Comments on: Five More Banks Fail Bringing Year’s Total To 69 http://wallstreetpit.com/9048-five-more-banks-fail-bringing-years-total-to-69 Wed, 08 Feb 2012 22:13:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Nick Baker http://wallstreetpit.com/9048-five-more-banks-fail-bringing-years-total-to-69#comment-47947 Nick Baker Sat, 01 Aug 2009 18:53:34 +0000 http://wallstreetpit.com/?p=9048#comment-47947 The economy had little if anything to do with the failure of First State Bank Altus, Oklahoma. The former president, was using a venture capital investment arm, to operate frauds and scams. They had received $126 million in unearned Oklahoma state income tax credits by filing two false claims it had invested $421 million in one company. Yet only $32 million was invested. Involvement by state officials allowed this to be pulled off. At the same time they were trying to scam two Colorado land owners out of several 1,000s acres around Steamboat Springs. Part of that scam was the way they issued loans to friends in a kickback scheme to tie up the Colorado property and foreclose, without the knowledge of the land owner partners. The Colorado victims/partners called for an outside audit the Altus Gang packed up and left Colorado virtually overnight. Then sent one of their people back to retrieved the computer they had been using. That person was caught trying to load the computer in their car. The files found on that computer contained all the evidence needed to prove or track down how the fraud works. Also found on that computer were the financials for the Oklahoma tax credit scam. That investigation is far from over. It was the use of the banks money to extend loans in the land scam, that took the bank down. The FDIC’s action cut the bank loose from the real problems which are still under investigation. You can see an amazing story of frauds at Prowlingowl.com The economy had little if anything to do with the failure of First State Bank Altus, Oklahoma. The former president, was using a venture capital investment arm, to operate frauds and scams. They had received $126 million in unearned Oklahoma state income tax credits by filing two false claims it had invested $421 million in one company. Yet only $32 million was invested. Involvement by state officials allowed this to be pulled off.

At the same time they were trying to scam two Colorado land owners out of several 1,000s acres around Steamboat Springs. Part of that scam was the way they issued loans to friends in a kickback scheme to tie up the Colorado property and foreclose, without the knowledge of the land owner partners. The Colorado victims/partners called for an outside audit the Altus Gang packed up and left Colorado virtually overnight. Then sent one of their people back to retrieved the computer they had been using. That person was caught trying to load the computer in their car. The files found on that computer contained all the evidence needed to prove or track down how the fraud works.

Also found on that computer were the financials for the Oklahoma tax credit scam.

That investigation is far from over. It was the use of the banks money to extend loans in the land scam, that took the bank down. The FDIC’s action cut the bank loose from the real problems which are still under investigation. You can see an amazing story of frauds at Prowlingowl.com

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