Federal Reserve Board announces second Cease and Desist Order against FSB Bancorp and Affiliates
The Federal Reserve Board today (February 27,2009) announced the issuance of a second Cease and Desist Order against FSB Bancorp, Inc., Altus, Oklahoma, a registered bank holding company and subsidiaries including but not limited to a complete list at the bottom. Most notably First State Bank Altus, Oklahoma; Altus Venture (3); and Quartz Mountain Aerospace, Inc. Altus.
Previously (January 16, 2009) the Federal Deposit Insurance Company issued a more detailed Cease and Desist Order against First State Bank of Altus, Altus, Oklahoma, detailing the unsafe and unsound banking practices and violations of law and/or regulations alleged to have been committed by the Bank.
The second order stressed specifically spells out the parent company must "prohibit self-dealing by institution-affiliated parties and their related interests, and the advancing of personal, business, or other interests" at the expense of FSB, its nonbank subsidiaries, or the Bank.
For those not familiar - many of these affiliates and officers have been at the center of the tax credit abuse scheme ProwlingOwl.com has been attempting to expose for the last two years and legal actions over the current Colorado we have reported on ProwlingOwl.com.
Paul Doughty who was just recently relieved as president, First State Bank Altus, and is still listed as president of LLC affiliates involved in both tax credits and the Colorado land scam, was also the individual allowed to advise on language in the 2006 amendment that failed to close the tax credit loopholes. Doughty's involvement in that effort coincided with large campaign donations to the chairman of the house tax revenue committee responsible for the amendment.
Paul Doughty as reported by AP, in 2006, was involved in using a $189 million loan to inflate the claimed investment in Quartz Mountain Aerospace to $221 million. Then claimed $66 million in tax credits for what was in reality only a $32 million investment. QMA recently closed its doors for lack of funds, without ever receiving the $189 million. Yet state officials have totally ignored calls to investigate what happened to the $189 million.
Update: Additional evidence was uncovered revealing Altus Venture claimed investing $221 million in 2005, then claimed investing another $200 million in 2006. Altus Venture received $66 million in tax credits for 2005 and another $60 million in 2006. This same evidence shows Altus Venture invested only $32 million and part of the $32 million was invested in 2004. We have yet to uncover information to show how much Altus Venture claimed to have invested in 2004 or how much they received in tax credits?
The list doesn't stop there. Quartz Mountain Aerospace is currently being investigated for failing to send payroll withholdings to the appropriate agencies.
Will the public finally learn the names of those who took $2 in tax credits for each $1 they never invested?
This complete story is covered in detail on http://prowlingowl.com
FSB Bancorp subsidiaries listed in Cease and Desist Order
Oklahoma Industrial Venture Capital Company LLC
Altus Venture Capital Fund III, LLC
Altus Venture Capital Fund IV, LLC
Altus Venture Capital Fund V, LLC
Quartz Mountain Aerospace, Inc. Altus
Global Industrial Leasing, LLC
Oklahoma Industrial Venture Management Company, LLC
FSB Development Capital, LLC
FSB Financial Planning LLC
First State Insurance Agency, Inc
Bankers Benefit Solutions, Inc
FSB Bancorp Capital Trust I
Others subsidiaries includeOklahoma Industrial Venture Capital Company LLC
Cease and desist order against FSB Bancorp and all subsidiaries. View
Cease and desist order against First State Bank Altus. View