Here in part 2 we will address the rap sheet of those taking down the bank. A rap sheet going back nearly 30 years to a previous bank failure and securities laws violation, and even crimes in between.

Part 1 Challenged the State Banking Department's misrepresentation of why the bank failed in an apparent effort to hide states officials protecting Paul Doughty's nearly 30 years history of fraudulent activity. including but not limited to:

A) 1982 bank failure number 1. Paul Doughty, then executive VP of the Oklahoma National Bank was the key figure in 18 criminal allegations resulting from the 1981 failure of the bank.

B) 1983 securities fraud. Paul Doughty was accused in both lawsuits and a state securities department complaint of using his position at ONB to help facilitate a securities fraud operated by Vulcan Oil and Gas. The Oklahoma State Securities Department dropped all charges when the culprits "consented to a permanent injunction against future violations of securities law."

C) 1987 business fraud Sil-Flo would sue and win a jury conviction against Paul Doughty and Rod Fancher, for business fraud. Fancher was president of Vulcan named in the 1983 securities fraud.

In light of the above the Oklahoma State Banking Department allowed Paul Doughty to take the reins as president of First State Bank, Altus around 1990.

D) 1996 First State Bank in Gould, a small disappearing community of some 250 residents, applied for permission to move its headquarters to Altus. Paul Doughty came to the commission meeting to voice his displeasure. In a controversial vote Mick Thompson, a non-voting (unless a tie) Chairman of the board would second the motion to force a 2 to 1 vote favoring Doughty.

Note: Some years later First State Bank Gould would become Stockmans Bank building its headquarters on the outskirts of Altus.

E) In 2006 Doughty, Anderson and friends launched another scheme using LLCs that were part of the investment arm of FSB Altus to scam two Colorado landowners out of some 4,000-acre s of prime resort area property in and around Steamboat Springs CO. They managed to scam over $25 million before being exposed in August 2007. That was a convoluted illegal lien scheme involving straw buyers receiving kickbacks to take out FSB Altus loans. It was these fraudulent loans made by a president that Thompson's group was protecting that Thompson ignored played a major factor in the bank failure

F) In 2006 Doughty, Anderson and friends worked an Oklahoma state income tax fraud that scammed the state of $66 million in unearned tax credits. When that made the news in 2006 lawmakers pushed through new legislation they promised would stop the abuses. Then let Doughty help write the legislation. Doughty still filed the false claim for which he received $66 million in free unearned tax credits. These claims are never examined or challenged, but hidden away in secrecy where no one would ever see.

In spite of claiming a total of $221 million was invested in QMA, Only a mere $32 million was invested. Altus Venture financial's reveal they were involved in some other activities, possibly money laundering. Large deposits and withdrawals often in the range of $40 million were flowing in and out of some Altus Venture accounts. At one time these accounts would hold more than $400 million for no apparent legitimate reason. In November 2005 alone $158 million was deposited and spread among various accounts. $131 million would be withdrawn the next month.

That would leave some $200 million for most of 2006, until another $43 million would be deposit in August only to have approximately $169 million withdrawn the next month. The accounts would remain level holding approximately $66 million when the records were uncovered in August 2007.

This money was held in separate accounts from the $32 million invested in QMA. It appears Altus Venture simply saw the opportunity to use the statements from these suspected money laundering accounts for documentation to claim investing $221 million in 2006. The only relationship between the $221 million claimed and the $32 million invested was Altus Venture's name was listed on the accounts. In total Altus Venture skimmed some $26 million in fees for what appears to be money laundering. As it turns out they made much, much more using those statements to file false tax credit claims.

The evidence revealed by these financial records fly in the face of every comment made by state officials that -- there was nothing illegal occurring -- some tax attorney's had found loopholes --- the law passed in 2006 closed those loopholes," etc.

The question for all Oklahoman's is why have state officials continued to deny and cover for this fraud? State officials were able to pull that off as long as they could keep all the documents secret. As inevitable happens the criminals will eventually make a mistake. The Altus Gang growing more greedy tried to pull off the Colorado scam at the same time they were working the tax credit scam and apparently laundering money. In Colorado they didn't have a state government on their payroll, for protection. They got caught and in the process exposed their financial records.

Let's see what this reveals. Documentation uncovered on just two of the more than 30 funds using this fraudulent tax credit program reveals $153 million in stolen tax revenue. Unearned public funds skimmed off into the pockets of a select few while leaving no paper trail except a small one page document hidden away by someone in the tax commission whose jobs was to never question. Or, so they thought until the Altus Gang screwed up and left their financial records behind.

Now Oklahoma officials are trapped. To act now to investigate this scheme would not only expose involvement and cover-up it would expose that some corporations and the wealthiest in Oklahoma owe $153 million in back state income taxes.. Not only are those who avoided paying state income taxes looking at paying all $153 million in back taxes they will have to eat the $76 million they paid for stolen goods. Unless they can find where the $76 million went? That's their problem.

Critical mass:

1,530 people who owe on average $100,000 a piece in state income taxes. It would only cost less than 10% of what these 1,530 owe to totally fund the entire campaign cost of every candidate for every office in the state. Not just the winners, but every candidate. With the identities of those involved hidden and unknown, elected officials have to assume that is also the campaign donor pool. Any state officials not involved and benefiting can see political suicide by even hinting something is amiss.

Oklahoma fraud has reached critical mass. Critical mass is when the rewards of fraud are so large that it only takes a small percentage of those rewards to fund every candidate for every state wide office; the public has been stripped of democracy and hopelessly trapped in servitude.

See Part 1. Challenging the State Banking Departments explanation of what occurred. View