Ed. A grossly misleading article!
Federal grand jury convicts former Altus banker in fraud case
Newsok.com July 2, 2016
A federal jury has found an Edmond man guilty of bank fraud in connection with the failed First State Bank of Altus.
Paul Harold Doughty, 67, of Edmond, was convicted Friday on 10 charges of bank fraud, conspiracy to commit bank fraud, misapplication of bank funds, making a false bank entry, and unauthorized issuance of a bank loan. He was the bank's president, CEO and eventually chairman.
The jury heard evidence over seven days, deliberating about seven hours before reaching a verdict Friday. He was acquitted on three charges.
He faces up to 30 years in prison and a fine of up to $1 million for each of the 10 counts of conviction.
Associate pleads guilty
In April, Doughty's former business associate, Fred Don Anderson, 67, of Eagle Point, Ore., pleaded guilty to one count of conspiring with Doughty to commit bank fraud.
Anderson testified as a witness for the government at Doughty's trial in exchange for reduced charges in the case. At sentencing, Anderson faces up to five years in prison and a fine of up to $250,000.
Anderson partnered with Doughty in several Altus-based businesses.
In July 2009, state banking regulators closed Altus bank due to its loan losses, and the Federal Deposit Insurance Corp. was appointed as receiver.
In April 2015, a federal grand jury indicted Doughty and Anderson on fraud charges related to loans to finance a Colorado real estate development; a series of "senior life settlement loans" from First State Bank of Altus to support an Altus aerospace company; and a $2 million unauthorized bank loan to a company under their control.