Are Oklahoma officials covering for a state bank used to lure investors into scams?
Are Oklahoma officials covering for a state bank used to lure investors
A clever scam while implemented differently in each situation operates
on the same fundamental concept used to take $100s millions of unearned
tax credits using loopholes in Oklahoma's Capital Formation Incentive Program.
Altus Venture, a subsidiary of FSB Bancorp Altus was one such loophole abuser
who gained $66 million in unearned Oklahoma tax credits.
Documentation from a Colorado lawsuit names FSB Bancorp Altus and
affiliates as defendants in a multi-million resort area land development
scam. This case reveals striking similarities to the financial shell
game, reported in several media outlets in early 2006, Altus Venture a FSB Bancorp
affiliate used to scam excessive tax credits in Oklahoma. Altus Venture
initiated the Colorado scam, then later substituted two other FSB
Bancorp affiliates Oasis Development, LLC and FSB Development Capital,
LLC. First State Bank Altus is also a FSB Bancorp affiliate. Altus Venture
still played a major role after it had been replaced. Altus Venture soon
reappeared as a creditor loaning the money it had originally committed to
investing. Loaning money in exchange for liens that could later be used
to gain control of the other owners property through foreclosure. This
tie up the MAPI property preventing the original owners from continuing
to sell the property after their associates pulled out on the deal.
reported Altus Venture (AV), used a similar
financial shell game to scam $66 million in Oklahoma income tax credits (which were then sold at half price to
corporations and wealthy individuals to avoid paying state income taxes)
to pay its investors $2 for every $1 they invested in AV's $32 million
investment in Quartz Mountain Aerospace (QMA) investment fund.
AV's tax credit case is only one of many Oklahoma officials, acting in
direct defiance of Oklahoma's Taxpayer Transparency Act, are protecting
by refusing to reveal information showing who is involved and how much
they are taking in public funds. Information that not only the Oklahoma
public has a right to know, but could have prevented the owners of
Colorado property from huge losses and costly legal proceedings to
recovery their property. According to the AP article Altus Venture,
whose president is also president of First State Bank Altus used a $189
million loan to inflate the $32 million to $221 million in order to take
$66.3 million in tax credits. Altus Venture only invested at most $32
million (evidence suggests much less) in Quartz Mountain Aerospace, and
should have received $9.6 million at most in tax credits.
The obvious question: are Oklahoma officials withholding this
information as cover for their own involvement and reaping huge unearned