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Updated report to appropriate authorities - evidence of tax credit and bank frauds. (cont)
4. Colorado land scam and Oklahoma tax credit fraud connection
The Colorado land scam case was a "loan to own scheme", involving more than $25 million. Below is a summary of the case as documented and described in evidence provided by the Colorado victims and posted on prowlingowl.com. This evidence was found on the server the Altus Venture's had been using to manage MAPI and MAPI financial records; discussed below.
Paul Doughty, the president of First State Bank Altus Oklahoma, and Don Anderson approached two Colorado land owners, Ron Sills and Roger Johnson, to enter into a partnership. The land owners would contribute their property. The Altus Group touting their association with a federally back bank would provide financial record keeping and working capital. F. Don Anderson, the president one of the bank subsidiaries would serve as the managing partner.
Doughty and Anderson's scheme was to gain ownership of as much as possible of 4,000 acres of prime resort area property in and around the Steamboat Springs Colorado resort area. This scheme would use a variety of illegal methods, under the umbrella of trust of a federally regulated and backed bank.
The partnership, Mountain Adventures Properties Investments (MAPI), started operating in the spring of 2006, then grew and sold something on the order of $12 million plus, in property and raised roughly the same in capital, by mortgaging the other Colorado partners' property, with their full knowledge.
Note: During this entire period, in spite of continued requests, and a court order; as of this date 4 years later the Altus Group has never provided the first financial statements.
4.2.1 Place liens on the property
After the Colorado land owners contribute property to the partnership; rather than raising working capital and without the knowledge of the Colorado land owner partners; Doughty and Anderson would arrange on demand loans, using the Colorado land owners property as collateral. Doughty as bank president would loan the partnership money and Anderson, as managing partner, would sign the liens. The loans would be far less than the value of the property mortgaged.
4.2.2 Deplete the funds to pay off loans
The next step was to deplete the partnership funds to insure the partnership could not meet mortgage payments and Doughty foreclose on the property. It was this process, to deplete partnership funds, where most illegal and fraudulent acts occurred.
To expedite fund depletion, the Altus Group employed numerous methods, in addition to extravagantly irresponsible spending of partnership funds, including, personal luxuries, homes and cars. The illegal activities included, but were not limited to: bank and wire transfer fraud; use of mirrored bank accounts (View 1, View 2); forgery and embezzlement; failure to perform fiduciary. Copies of which can be found at MAPI Case Documents. View
4.2.2.1 Mirrored bank accounts, bank and wire transfer fraud, forgery and embezzlement. View
The Altus Group, set up mirrored accounts for the Colorado partners, at First State Bank Altus. Without knowledge of the Colorado partners, the Altus Group issued checks from the MAPI account to all partners including the Colorado partners. Instead of giving the checks to the Colorado partners, the checks would be deposited in the First State Bank Altus mirrored accounts. Where the Colorado partners were not aware the funds were there and the Altus Group had custody of the account and funds.
4.2.2.2 Loan Kickbacks View
In another angle to the scheme, Anderson, Doughty and their friends bought several lots using bank loans to finance 80%, MAPI would carry a 10% second loan and, for the record, the buyers a 10% down payment. On or about closing, the Altus Group would use the MAPI partnership account to repay (kickback) the 10% down payment to certain lot buyers that included themselves and friends.
4.2.2.3 Bank and wire transfer fraud
Vectra Bank, was a party to bank and wire transfer fraud; and failure to perform fiduciary. The primary MAPI account was at the local branch of Vectra Bank where David Bruni was president, was a party to assisting the scheme in multiple ways: failure to fulfill fiduciary responsibility relating to funds disbursements; Mirror Account at First State Bank of Altus Based Upon Vectra MAPI Account Activity; illegal wire transfer.
David Bruni was later hired to take over as president of MAPI, with a lucrative bonus, further depleting the MAPI funds, again without the full knowledge of the Colorado partners. This was another of the acts leading to the Colorado partners calling for an outside audit.
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