Federal Reserve Board announces Cease and Desist Order against FSB Bancorp and Affiliates

February 27, 2009

See FDIC (January 16, 2009) - Cease and desist order against First State Bank Altus. View

The Federal Reserve Board today announced the issuance of a 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, OK; Altus Venture (3); and
Quartz Mountain Aerospace, Inc. Altus.

For those not familiar - many of these affiliates and officers have been at the center of the tax credit abuse scheme has been attempting to expose for the last two years and legal actions over the current Colorado we have reported on

Paul Doughty who was just recently relieved as the 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.

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?

FSB Bancorp subsidiaries listed in the Cease and Desist Order

First State Bank Altus, OK
Global Industrial Leasing, LLC
Quartz Mountain Aerospace, Inc. Altus
Altus Venture Capital Fund III, LLC
Altus Venture Capital Fund IV, LLC
Altus Venture Capital Fund V, LLC
Global Industrial Venture Management, LLC
Oasis Development, LLC
FSB Development Capital, LLC
FSB Financial Planning LLC
First State Insurance Agency, Inc
Bankers Benefit Solutions, Inc
FSB Bancorp Capital Trust I
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