Will the FDIC be successful in locating the Altus group's financial records?
March 7, 2009
Will the FDIC and Federal Reserve Board be successful in forcing FSB Bancorp, Inc., Altus and its subsidiaries to produce legitimate financial records for their ordered audit?
Failure to produce financial records* is a common characteristic found in all claims of financial wrong doing lodged against this Altus group of operators. Even a federal court failed. Here are two examples.
- ***Failure to abide by a federal court order issued in May 2008 to provide financial records for MAPI**.
- Failure to provide any financial records to the majority MAPI partners since the partnership started in May 2006. In July 2007, after 14 months and approximately $25 million passing through MAPI the majority MAPI partners formally demanded financial records.
- Paul Doughty, then president of several FSB Bancorp subsidiaries including First State Bank and already known as the largest abuser of Oklahoma's tax credit program was allowed to advise on the language in an amendment to the law that was portrayed as "to stop tax credit abuses." Yet not only did he amendment fail to close the loopholes the changes gave abuses more freedom to abuse. Language in this law specifies all information about this program be held in total secrecy.
This group uses its affiliation with First State Bank Altus a federally regulated bank as it proof of credibility and qualification to handle all finances and financial management when soliciting business arrangements. Yet this group, in every known case, including a federal court order, has refused or failed to provide financial records.
Merely relying on auditors to uncover wrong leaves the door to fraud open to those who have learned how to cook the books and hide the books. Case in point is the Security and Exchange Commissions auditors failing on three occassions to catch the Madoff scheme. All while Charles Markopolos, for nearly 10 years, had not only been warning the SEC, but Markopolos explained how the fraud worked. Markopolos was not along, in May 2001 a then Barron's magazine reporter, Erin E. Arvedlund, also raised a warning flag.
* Financial records means, along with other things, accounting, tax returns, financial statements, balance sheet, checking account records, etc. This is not just a matter of sloppy or slow bookkeeping.
** MAPI or Mountain Adventures Properties Investments was a joint venture of four partners Mountain Adventures Properties that is currently involved it extensive litigations.
***Failure to abide by a federal court order.
- Order Granting Debtor's Motion to Compel Discovery (signed by Judge Campbell): Dated May 19th 2008 and deadline by May 29th, 2008. RE: FSB Development Capital and Altus Venture.
View court order
- Letter from our Attorney asking for Altus' to comply before he asks the Judge for a Motion to Compel. Dated May 16, 2008
- Altus' attorney refusing/objecting to produce discovery to us. Dated May 15, 2008