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Then what happened?

Eventually the majority partners called a meeting electing new officers and ordered a full audit. Within a matter of days all members of the Altus Group and those they brought in resigned. Then in a hurried attempt to clean out the Colorado office they had been using they failed to completely erase all the files on the computers. Leaving behind copies of some financial information as well as letters and email's.

Files left behind included discussions about using liens to foreclose on the property. One key foreclosure was filed by Robinson Construction, a partner, using a mechanics lien claiming they had not been paid for construction fees. Records clearly showed all Robinson billings had been paid including payment checks endorsed by Robinson. -

The construction company (engaged by and in league with Altus Ventures/Oasis Development) still claiming they haven't been paid, have filed mechanic's liens on the properties in question as well as on other property owned by their Colorado partners. Together, this construction company and Altus Ventures/Oasis Development have forced their Colorado partners into bankruptcy. There are now three resulting bankruptcy actions filed as a result of FSB Altus activities. These bankruptcies were filed only as a last resort to save the Colorado partner's considerable land holdings from foreclosure by FSB Altus. The legal actions taken by these Colorado partners in response to the adverse Altus Ventures/Oasis Development actions have continued to escalate since August of 2007 resulting in hundreds of thousands of dollars in legal fees, millions in lost revenue, and damages not only to the principals of these companies, but to their customers who have been impacted by mechanic's liens, broken contracts, and lost opportunities to purchase and move into their new homes. Many of these customers have had to move out of the area because they were unable to remain in the area after having lost their opportunity for their new home. Others have been unable to refinance their properties, sell their properties, or obtain construction financing to build homes because of the mechanics liens which were filed due to the actions of FSB and its affiliates.

Kickbacks paid -

Consultant: Hired an ex-Vectra bank manger who had authorized a $3????? million loan before leaving Vectra. Upon being hired as a consultant the former banker received a $??? signing bonus, ??? salary and 10% of the partnership.

Methods used to skim funds and exhaust capital included paying themselves and allies huge salaries, consulting fees and bonuses. The Colorado land sales deception involved a kickback scheme to repay down-payments to buyers who were insiders of FSB Altus, apparently without disclosure to the bank or the property owner. The legal terminology for this is "bank fraud." Portions of the proceeds of the land sales were then dispersed by Altus Ventures/Oasis Development to its subsidiaries...i.e. Global Industrial Management, LLC and FSB Development, and to pay "bonuses," "consulting" and "management" fees and to pay for travel expenses and luxury items without knowledge or authorization of the land owner or Colorado partners. During the year while this scheme was underway, Altus Ventures/Oasis Development ignored property owner's requests for comprehensive financial reports or otherwise delayed providing proper accounting. Altus Ventures/Oasis have, in fact, refused to supply such accounting as of this date, even after having been court-ordered to do so in May of 2008. These people apparently believe they are above the Federal Court system.

Those paid kickbacks

  • Paul Doughty bought lot 38 Grassy Creek purchases a cashiers check for $68,263.37 from First State Bank Altus 3-2-07; Paul Doughty receives a check for Lot 38 $68,263.37 3-28-07
  • Global Industrial Management bought lot 23 Grassy Creek and Global Industrial Management received a $145,335.58 check dated 10-19-06 marked loans lots 23
  • Joe Leverett bought lot 35 and received a $70,000 check marked loans lot 7
  • Crow Family bought lot 11, 37 and 39 Grassy Creek and Crow Family received a $100,000 check marked loans lots ???
  • C Joseph Ramos bought lot 1 and 40 Grassy Creek and C Joseph Ramos received a $100,000 check marked loans lots Unmarked
  • Edisn Ventures LLC bought lot 14 and Matt Griffith received a $70,492 check marked loans lot 14
  • William C. Ray bought lot 7 and received a $70,000 check marked loans lot 7
  • Michael C. Carter bought lot 5, 6 Grassy Creek
  • Michael C. Carter bought lot 15 Grassy Creek and received a $100,000 check marked loans lots 4, 5 & 10

Some of these changes included substituting another FSB Bancorp affiliate for another, i.e., replace Altus Ventures with Oasis Development, and bringing in a third partner Robinson Construction. -

Oasis Development LLC, consisted of ????? and ??????

What happened to Altus Ventures? -

We will later learn Altus Ventures remained involved as a source of funding, but rather than as agreed to invest funds, Altus Ventures would loan the money in exchange for liens on the property contributed by the other partners. This was arranged by the financial managers who were part of the Altus Group, without the authorization of the partners who contributed the property. Later Altus Ventures and Robinson Construction, now a partner, would use liens in an attempt to seize the property through foreclosure.

More notes

Appears that they were trying to set it up where they would loan MAPI money on recourse loans and allow MAPI to loan money on Non recourse. An arrangement that would MAPI subject to foreclosue while it no no such rights to those

Reimbursement for Mt. Harris lot purchases

Tried to setup a another convoluted scheme ???? between MAPI and PCG, Keys that appeared to have no purpose other than to complicate an already confusing shell game. In the process MAPI would have been funding no recourse

Then Don Anderson writes a Vectra Bank check on the MAPI account to Global Industrial Management LLC for $145,335


Related Links

MAPI Overview, Structure & Membership Interest. Diagram.

FSB Bancorp and First State Bank, Altus OK Rating

MAPI Time Line

MAPI Lawsuit documentation

Disclaimer. This is the writers best interpretative reconstruction of the events based on information gleamed from the Colorado lawsuit and other available sources. The fact that the Altus Group, in spite of a court order, has yet to provide a full accounting to the other partners leaves some information incomplete and best good faith estimate.

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