Quartz Mountain Aerospace files for Chapter 7 bankruptcy

OKLAHOMA CITY Quartz Mountain Aerospace, whose loan defaults helped take down an Altus bank earlier this year, has filed for Chapter 7 bankruptcy, listing $30.38 million in assets and $16 million in liabilities.

[Just Another Okie]

The City Of Altus along with the City Counsel had been warned, time and time again, Quartz Mountain Aerospace,(Luscombe Aircraft) was a bad investment. They had failed to pay heed to any and all warnings of a future bankruptcy. They in turn mentioned how Luscombe Aircraft was a win win for the community. Now that they, have filed, where does that leave the investors? Well simple really, they are left red faced and holding onto the tail of that white elephant! Others who invested quite heavily and lost, might want to think about bringing a class action suit against the City Of Altus, for having promoted a bad investment.

[Nite Owl]

There were some early investor taken, but those investing the $32 million in 2005 received $2 for every $1 they invested. They received their 200% profit immediately after they invested.

To pay investors $64 million in profits Paul Doughty the president of Altus Ventures, the investment fund, used a fake loan scheme to receive $126 million in unearned state income taxes, through a 30% tax credit incentive program.

Doughty was also president of First State Bank, Altus, where he misused his position to create $643 million in fake loan documents. Doughty used $389 million of the fake loans to add to the $32 million as proof Altus Ventures invested $421 million, and received the $126 million in tax credits. Doughty provided the remainder of the fake loans to other investment funds they used to obtain another $66 million in unearned tax credits. One of those other investment funds was Affinity Ventures. This was all allowed to happen courtesy of Tony Mastin, head of the Oklahoma Tax Commission. Mastin then falsified his reports to hide these scams and others.

Now here is how the scheme to get QMA the $32 million it needed actually backfired on QMA. Doughty turned so greedy he charged QMA investment fund management fees for the entire $421 million. We aren’t clear on exactly how much those fees were, but some reports have nearly one-half the $32 million, leaving QMA way short of the $32 million it needed. As a result QMA went broke.

The early investors should sue the whole shebang, fail bank, Altus Ventures, Paul Doughty, Don Anderson, one of Doughty’s many co conspirators, those receiving the 200% profit, the Oklahoma Tax Commission and a hoard of other state officials. That suit should include every state lawmaker, because the law creating this tax credit program was approved unanimously.

You can see the whole story and more at prowlingowl.com