Evidence of bank fraud involved in tax credit fraud, on federal computers, state officials can't hide.
Tax credit fraud schemes part
Finally exposed - $643 million loan fraud
Four clicks to bank fraud.
Who used the counterfeit loans?
Relationships between banks, bank holding company, and non-banking subsidaries or LLCs.
FSB Bancorp Altus, and non-banking subsidiaries. $432 million more.
This is a case of bank fraud (at First State Bank, Altus, OK) connected with the largest case of tax credit fraud uncovered to date. Evidence of this bank fraud has "stood out like a red wagon in a field of snow," for 4 years. This evidence, 50 to 100 times normal, went unnoticed by the Oklahoma State Banking Department and the FDIC for more than three years. In January 2009, the FDIC brought in a special team of forensic bank auditors. The auditors, spent six months conducting a detailed audit of every aspect of the bank's books, and they too, missed, the obvious. In fairness to the auditors (but not the state banking dept), this bank was more riddled with fraud than a machine gun target, after a day on a firing range.
July 31, 2009, The FDIC, still unaware of this fraud, seized First State Bank, Altus, and turn the bank over to Herring Bank, Amarillo, TX.
Days later ProwlingOwl.com exposed this fraud, for the first time. Shortly thereafter State Representative Mike Reynolds, uncovered the borrowers and loan amounts. State officials have ignored the bank fraud. To acknowledge the bank fraud would validate tax credit fraud.
Follow the steps outlined below that take you to the FDIC quarterly reports (required by all banks), and in this case, for First State Bank Altus, OK.
Copies of Altus Bank FDIC Call Reports provided for convenience.
1. Go to "FDIC Bank Find" enter the following, then click "Find"
|Name:||First State Bank Altus|
2. Next: Click on - "Last financial information" available about First State Bank Of Altus.
3. Under: "Information Gateway" (blue area), select the following then Click "Generate Report"
|ID Report Selections:||"Assets and Liabilities" works|
|Report Date:||December 31, 2005 for starters|
Look for Line 48 "Unused loan commitments" $649,738(,000) all amounts are in 1,000s. To view a sample page of what you should see click here.
Click on the number 48 to see the definition for "Total unused commitments" same as "Unused loan commitments", which is what the bank is committed to loan. The commitment has to be within the banks capabilities, and considered acceptable loan practices.
By comparing different quarters, you will find the loans were never made, nor could be made. This constitutes bank fraud. A loan commitment document from a regulated bank would be accepted as valid anyplace.
For convenience we have consolidated on a spreadsheet, the bank's "Assets and Liabilities" information for the periods, December 2001 through March 2009, and information found on Federal Reserve System--National Information Center (NIC) for the bank holding company, FSB Bancorp Altus and subsidiaries. View spreadsheet
Examining all call reports reveals, "Total unused commitments" turned excessive starting with the September 2004 and continued through June 2007. We haven't obtained access to information that would reveal if additional counterfeit loans were issued for the other periods.
What would be normal for this bank? Below is a comparison with other Altus Banks in (,000)
|Bank||Total assets||Unused loan
|First State Bank of Altus||$97,644||$649,738||Stockmans||$109,972||$17,568||The National Bank Of Commerce||$150,135||$25,977||The First National Bank in Altus||247,596||$14,317|
After the counterfeit loan scheme was discovered, State Representative Mike Reynolds contacted, Herring Bank, Amarillo, Texas, which had taken over, First State Bank Altus. Herring Bank provided the loan amounts and identities of the borrowers.
Note 1: FSB Bancorp Altus is the bank holding company and parent of First State Bank Altus and numerous nonbanking LLC subsidiaries used in the various schemes. Banks and a banks' nonbanking affiliates or LLCs are controlled by different agencies. While First State Bank Altus OK, reports to the FDIC, the bank parent FSB Bancorp sends a totally different report covering FSB Bancorp's financials and the nonbanking subsidiaries like Altus Venture to the Federal Reserve System.
Note 2: You will see what appears to be inconsistencies, but there were several changes in reporting cycles during this period. Some were originally twice per year then went to quarterly. The Federal System Reserve has different reporting requirements based on a holding companies total assets. You will notice that when the $432 million came into play FSB Bancorp Altus was require to use a different report which results in different values.
For FSB Bancorp Altus reports go to Federal Reserve System--National Information Center (NIC) search form click here
Using the following information to locate the repots. There will find four different categories and you will need to look through all to get the full scope.
BHC ID or RSSD ID: 1067194
Bank Holding Company Name: FSB BANCORP, INC.
City State: Altus, OK
An examination of FSB Bancorp reports reveals another $432 million suddenly appears under "Total Combined nonbank assets of nonbanking subsidiaries" for the 2nd and 3rd quarters 2008, then dropped to $156 million range were it would remain through the last report.