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Colorado land scamAnother 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. We are talking big fake loan documents! Potentially $1.4 Billion: maybe more, maybe less, but what is a few $100 million?
Learn who used $642 million in 2005. View more
We had previously reported the Altus Gang's involvement in tax credit fraud and the Colorado land scam. Now we have uncovered a new element of the fraud that spewed from that scheme machine, the likes of "Wild Mary Sudik" when she blew in on March 26, 1930, near what is now the intersection of I-240 and S. Bryant in Oklahoma City.
Workers had been waiting for daylight to replace the drill bit, after punching into the Wilcox sand at 6,741 feet. At 6:30 AM while the crew was pulling the 6,741 feet of pipe from the hole; easing the 40 to 50,000 lbs of weight of pipe bearing down on a small hole that penetrated the top of the Wilcox; the Mary Sudik No. 1 would suddenly become Wild Mary. The biggest gusher in the US after the blow out preventer was invented, around 1920.
First came the vibration of the pipe; then the rumbling, then the deafening roar that would permanently destroy some workers' hearing. At first clear gas, turning to a greenish tinge, then to the black crude shooting forth joints of pipe like toothpicks in the air while gushing forth 200 million cubic feet of gas and intially estimated at 72,000 barrels of oil per day, before settling at 20,000 BPD.
The roar of the gas could be heard nearly 30 miles away in Purcell. Over the next 11 days workers would stand waist deep in oil trying to cap the well with Wild Mary coating cars 12 miles south in Norman and the state capitol more than 10 miles to the north-northwest. While it was estimated 800,000 barrels of oil was wasted, more 200,000 barrels of oil would be recovered from low places in the area. Wild Mary would eventually produce 5 million barrels of oil. Yet, in all her glory and even at today's crude oil price of $70 per barrel this is still less than the Altus Gang' scheme machine had the potential to steal.
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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That $474 million was filed in 2006, many of which we know were false. The others we can't document.
We have been able to obtain the complete money trails showing how the fake or artificial loans were used to create fake documentation for the $226 million 2005 and $200 million 2006 false claims. OTC tax credit reports show $427 million was claimed to have been invested in 2006 and $247 million was claimed to have been invested in 2007.
During the same time period an additional $192 million was found setting unused in an Altus Venture account.
The false loans were used some place and it appears some was likely used for other false tax credit claims. 2007 63 million 247 $310 9-06 $435 million Another $169 Merrill Lynch up $43 6-07 $365 million
That leaves as much as $425 to $575 million more in fake loans for 2005, another $424 million in fake loans for 2006, $365 million for 2007 and $432 million for 2008. Note some of this money be used for more than one year.
In summary, we have an undeniable amount of evidence showing how various false loans, claims, reports and other documents were used over and over in the key areas required to commit and coverup tax credit fraud involving $100s million. Based on the $1.4 Billion it could be as high at $420 million for the period covered.
The Oklahoma Tax Commission has been very negligent, it what appears to be by design, in failing to provide complete and accurate information and reports. The tax commissions has consistently misused its position to interpert all laws: to the advantage of protecting those using and abusing the tax credit program; and to the disadvantage of the public. In effect denying the public information that would allow learning how much this program is costing, what the money has been used for and who is benefiting. The tax commission has made a mockery out of OpenBooks, while those lawmakers who bask in the glory of passing a the Taxpayer Transparency Act now hide behind the shield of ignorance and fear to speak up.