December 18, 2008

FSB Bancorp Altus and subsidiaries have been named defendants in a Colorado resort area scam involving several thousand acres of prime resort area property and some $25 million in funds. The same Altus group:

1) is reportedly the majority owner (bought with public funds) and controls the board of Quartz Mountain Aerospace (QMA) recently exposed for misuse of employee pay withholdings' resulting in the loss of insurance and unemployment;

2) discussed in news articles as the biggest abusers of Oklahoma's tax credit loopholes, given $66.3 million in public funds for investing at most $32 million, possibly as little as $16 million in QMA;

3) who delivered a large bundled campaign donation to the chair of the committee working on the 2006 amendment to close the tax credit abuse loophole; then one key officer. Paul Doughty, was allowed to assist in crafting the language that "failed to close the loopholes;"

5) which has been named is several other cases of financial wrong doing, including Sil-Flo, EZ-Way and Vectra Bank of Colorado;

6) is now named as defendants in a Colorado resort area scam involving several thousand acres of prime resort area property and some $25 million in funds.

This lawsuit spells out various financial shell games involving the use of multiple FSB Bancorp Altus group subsidiaries involved in:

1) a "loan to own" scheme.

2) paying kickbacks

3) using Mirror bank accounts to funnel other partners funds to their own accounts.

4) and more listed on prowlingowl.com

Note: there is nothing in Oklahoma law preventing state officials from being investors in these companies. State officials could have been those investors Altus Venture used the $66.3 million in tax credit to pay $2 for every $1 they invested in the QMA venture. One basis for this question is the ongoing vigorous effort by state officials to prevent the public from leaning who is benefiting from $100s million per year in tax credits given to unidentified groups with nothing of value in return.