From Oklahoma Watchdog;
Investigative researcher and writer Nick Baker who goes by the handle “The Prowling Owl” and runs prowlingowl.com wrote a story in 2009 headlined “Tax credit fraud details found in Foxborough prospectus.”
Involved in Foxborough, reported Baker, was Foxborough board member Barry Switzer, a figure, the researcher believes is involved in a program “to steal public funds, through tax credit scams.” This prospectus, Baker notes, is basically saying: “Our goal is tax credits, we don’t want companies with employees. We only want companies that don’t need money and have the free and clear assets to borrow the money to give us on paper so we can give it back, call it an investment and get tax credits.”
In another post, headlined “OTC (Oklahoma Tax Commission) gives Switzer’s and partner’s $48 million in tax credits for investing $5 million,” Baker writes:
“The fraud is executed in the Oklahoma Tax Commission, which comes under the supervision of the state treasurer. Barry Switzer just had a fundraiser for Rep. Ken Miller, running for state treasurer. Miller is currently chairman of the House Appropriations and Budget Committee, one of the most powerful positions in the legislature, while tax credit fraud runs rampant and ignored. While Switzer and cronies pillage the state treasury.”
Links to the Prowling Owl;
OTC Gives Switzer and Partner’s 48-72 Million in Tax Credits for Investing 5 Million
There is LOTS more here;
The Prowling Owl has the story
Related post Oklahoma officials ignore evidence of tax cred heist
From the Tulsa World:
How the credits work
Investors give money to a capital investment firm approved by the state. The capital investment firm invests the money in a “target company” that meets certain eligibility requirements set by the state.
The investors are then allowed to claim tax credits worth 20 percent of their original investment in the Small Business Program or 30 percent in the rural Small Business Program.
Most of the investing entities are limited liability companies. Because the names of the members of such companies are confidential, critics say it is difficult to know who the actual investors are and how the tax credits are allocated.
Read more from this Tulsa World article