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Another fraud from the Altus Gang's scheme machine.
We all know there are suppliers of false identification, passports, titles and the like. How many were aware there is far more money in fake loan documents.
A federally regulated and insured bank issued six bogus loan documents, totally $643 million! The loans went to investment funds, used to file tax credit claims, and receive up to 30% of the amount claimed to have been invested, in tax credits. The tax credits can then be sent to the tax commission, which will issue tax refund checks at face value.
Evidence has been uncovered showing two of the six funds filed claims to have invested $272 million, in 2006 and received $79 million in tax credits.
The fake loans going back to 3rd quarter 2004, where not found until Herring Bank of Amarillo TX took over the bank July 30, 2009.
The fake loans had been over looked by: Forensic auditors brought in to perform a 5 month detailed audit before the FDIC seizing; Oklahoma State Banking Department; FDIC; and internal auditors
Learn who used $643 million in 2005. View more
So what is a fake or artificial loan? The same as any other loan except there is an understanding between the bank and borrower that the bank keeps the money. The borrower only gets their copy of the loan documents. So what is the purpose?
- The borrower will have no debt.
- The bank will have no money at risk, and this doesn't change the bottom line or alter the banks financial condition.
- And, as we have now learned the so called oversight agencies never even noticed! What we don't know is if that was out of sheer negligence or for a chance to secretly invest in one of these guaranteed $2 for $1 investment opportunities? My hunch is both!
Here's the deal: fake loan documents are for cheating the innocent and unwitting while the bank and borrower divide the booty. A lot of booty! This could be as much as $400 million to more than $600 million in booty from this little scheme! We not are not looking for just one loan. This loans can be spread among many. $50 million here, another $100 million there, etc.
Example 1: A shady company with bad credit wants to bid on something like a government or construction contract that requires the bidders to have proof of financing.
Example 2: Oklahoma's own tax credit fraud scheme. We already knew the Altus Gang used insider fake loans to file false claims for $221 million. For that they received $66 million in tax credits. Not bad for a little paper shell game using false documents. All it takes to work is a couple of key state officials who are willing to turn their backs and not challenge the documents which look legitimate. State officials seldom, if ever, challenge documents anyway. The Altus Gang had $66 million to bargain with, and a way to channel the money to the state officials, that has been proclaimed as "not illegal." That is done through these guaranteed $2 in profit for every $1 invested schemes state officials keep hidden in secrecy while claiming they know of nothing illegal occuring.
What this new evidence shows is this fake loan business was far bigger than we ever imagined. So who where the other users? That is going to take a little work, which should be handled by state officials. Folks those dogs just won't hunt in Okie land.
Where can anyone find this information? That is the good part. It is so easy to see, if you know where to look? Click here!
The above is all that is needed to see the fraud is in the $100s million and far more than enough to make the point. The following additional information shows how the fraud was far bigger.
As to why the state banking department and FDIC did not catch this? Why don't you just give them a call and ask them? Let me know their reply? Be warned, they all seem to be right touchy about this subject.
It would be irresponsibly naive to rule out the possibility the Oklahoma Tax Commission was not including all claims in its reports. We have evidence to show they have been failing to report or misreporting.
Adding all of this up gets complicated because there are additional amounts tucked away in other places, but here are the totals.
| Year | Fake Loan Amounts | Tax credit investments claimed | Unknown uses | ||||
| 2005 | $800 to $931 Million | $221 plus** | $1.2 Billion plus** | ||||
| 2006 | $635 Million | $474 Million | $161 Million | ||||
| 2007 | $365 Million | $310 Million | $55 Million | ||||
| 2008 | $432 Million | $??? | $432 Million plus | ||||
| Totals | $2.3 Billion | $1 Billion | $1.3 Billion | ||||
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** Tax commission never provided this info. We were able to obtain info on one. *** Tax commission has yet to release |
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