OKLAHOMA CITY — For over a year now, this reporter has been investigating the rampant abuse taking place regarding Oklahoma’s tax credit program as administered by the Oklahoma Tax Commission.

Two people: Rep. Mike Reynolds (R-Oklahoma City) and Nick Baker, a blogger known as “The Prowling Owl,” have been doing the legwork and research on tax credit abuse in Oklahoma and the financial drain that is resulting due to scheming and criminality connected to the state’s tax credit program.

On RedDirtReport.com, another site operated by this reporter, we have featured nearly weekly postings by a Norman, Okla.’s. Baker. We believe Baker – The Prowling Owl – has done the State of Oklahoma and its citizens a great service by laying out a very, very complicated process in a multiple series of stories at his site – www.prowlingowl.com.

Baker lays it out pretty plainly. He refers to the OTC as “the untouchables” where hundreds of millions of state-funded unearned profits are “going into unknown pockets.” Then there is the First State Bank of Altus and one-time president of the bank, Paul Doughty, a man Baker notes is “the largest abuser of Oklahoma’s tax credit program.”

The Prowling Owl’s Baker has focused on Altus Ventures, Scissortail and Foxborough Funding Company. Capital West Securities has also been implicated in these tax credit schemes as outlined by Baker. Some very influential and powerful Oklahomans have been linked to these schemes.

Of course OTC has been notoriously cagey about the program. An attempt by this reporter to get some answers from the OTC several months ago was ignored. Clearly the OTC has something to hide and Rep. Mike Reynolds, who recently tackled the criminal operation known as ACORN, is starting to shake things up, as noted in today’s edition of The Oklahoman in an article headlined; “Oklahoma legislator Mike Reynolds says tax credit plan is abuse target.”

As quoted in The Oklahoman, Reynolds said: “There are far too many programs that have no objective legislative oversight. While it is difficult to know specifically how much money each of the programs cost, I have bcome aware in the last few months of two programs that have apparently cost half-a-billion dollars during a three-year period.”

Reynolds adds that about “$764 million has been invested in 112 companies during the past three years” and “I consider most of the so-called investments to be an outright fraud perpetuated on the taxpayers of Oklahoma. As far as I’m concerned, it is criminal activity, it is outright fraud agains the state of Oklahoma and its taxpayers.”

In typical mealy-mouthed fashion, Paul Ross, a spokeswoman for the OTC told The Oklahoman: “We understand the frustration when there is taxpayer information that cannot be released due to confidentiality statutes.”

Yeah, sure, Ms. Ross. Confidentiality is something criminals love taking advantage of.

And Reynolds wrapped up the article with a great quote: “In short, I do not trust the Tax Commission and their workings.”

Hopefully, Reynolds will follow through with possible legislation where records about tax credits would be revealed. He also wants to end the small business and rural small business tax credit programs. A grand jury investigation is also possible, Reynolds said. This is great news. The light is beginning to shine on this whole operation.

Copyright 2009 Oklahoma Watchdog