President of tax credit fraud investment speaks out, exposing fraud. Altus Times
May 13, 2010
"The $221 million that was claimed to have been invested in LAC/QMA (Quartz Mountain Aerospace) for working Capital was not true; we never received that kind of money and we never had control of and could not use those funds, which means they were never really invested."
John Daniel, former president Quartz Mountain Aerospace. Source Altus Times, May 10, 2010.
Note: QMA or Quartz Mountain Aerospace, prior to that LAC or Luscombe Aircraft.
John Daniel, was president and chief operating officer of QMA; from early 2001 through late 2007. John's time covered the period the $221 million was claimed to have been invested. Other evidence and QMA's closing one year later clearly refutes any claims QMA received the claimed $221 million. In fact more than $221 million was claimed, addressing that would only confuse the issue at this point. $189 million more than adequate to demonstrate fraud.
QMA, like some, but not all, investments were pawns used to facilitate the fraud, then ended up victims of the fraud. As a result they received only a small portion (less than one-seventh) of the amount claimed, and didn't have enough funds to survive.
What John Daniel is referring to.
Paul Doughty was the president, (of then) First State Bank Altus and Altus Ventures. Altus Ventures and a sister
subsidiary, Oklahoma Industrial Venture Capital Co, claimed invested $221 million in a Quartz Mountain Aerospace, in order to get $66 million in tax credits. The tax credits were then sold at half price to others, through a bogus investment scheme. One of the buyers, Chaparral Energy bought $30 million in tax credits for $15 million. Chaparral then sent the $15 million in tax credits to the tax commission, which issued $30 million in tax refund checks to Chaparral Energy. Chaparral received more than $27 million its tax credits in the form of tax refund checks after QMA closed, and by law the tax credits should have been recaptured 1.
The recent FDIC seizing of First State Bank Altus reveal Doughty as president of the bank, had issued counterfeit loan documents, to Altus Venture LLC, another of his subsidiaries Oklahoma Industrial Venture Capital Company, LLC (OIVCC)(1); and Affinity Ventures a fund Doughty operated. Affinity Ventures LLC belonged to Robert McDonald, then head of Capital West Securities. Capital West Securities was a strong lobbying force behind tax credits and program operating in secrecy.
(1) Oklahoma Industrial Venture Capital Company, LLC (OIVCC), was a shell used a pass-through entity for tax purposes
To add insult to injury, in an effort to give the appearance of legitimacy, Altus Ventures charged QMA fees on the falsely claimed $221 million, instead of the $32 million QMA actually received.
Altus Times Letter to Editor.
E-version is required to view the letter on the Altus Times' website. Alternatively you can see article at the following.
Letter to Editor Mirror site.
Note: (1) Altus Ventures/Chaparral Energy. Knowing the tax commission had ignored evidence of a fraudulent claim, knowing it held the evidence in secrecy; soon after QMA's closing, I personally made it a point to contact OTC to officially notify the tax commission of QMA's failure and the now indisputable evidence of a false claim. The contact was, Dawn Cash, Tax Policy Director, in charge of tax credits. Dawn Cash assured me the claim would be investigated.
Now, more than one year later and after obtaining copies of confidential OTC emails covering tax credits; these emails reveal the claim was ignored and OTC was in an all out blitz to issue tax refund checks, for still unused tax credits. OTC continued issuing tax refund checks for tax credits fraudulently obtained by misrepresenting the investment in Altus Ventures. Knowing former QMA employees had not and would not receive their last pay; and were being denied medical and dental insurance; because the employees premiums, although withheld from their paychecks had not been forwarded to insurance companies by QMA.
Both Oklahoma officials and major media outlets have continually demonstrated they have no appetite for tax credit fraud
What say ye now? It is the secrecy, stupid! That unlawful and unconstitutional secrecy!