- Associated Press - Monday, June 1, 2015

OKLAHOMA CITY (AP) - A federal grand jury has indicted the former president of an Altus bank and a business partner on bank fraud and other charges, federal prosecutors said Monday.

The indictment names Paul Harold Doughty, 66, of Edmond, and Fred Don Anderson, 66, of Eagle Point, Oregon, U.S. Attorney Sanford Coats said. The 15-count indictment also includes allegations of conspiracy, making false statements to banks and misapplication of bank funds.

The allegations involve loans at First State Bank of Altus, where Doughty was president and chairman. In July 2009, state banking regulators closed the bank due to loan losses and the Federal Deposit Insurance Corporation was appointed as the bank’s receiver.

The indictment alleges Doughty and Anderson committed fraud involving three alleged loan schemes, including a series of loans to finance a Colorado real estate development.

In 2006 and 2007, Doughty and Anderson recruited buyers for real estate lots, and Doughty approved and issued 14 loans to buyers totaling more than $10 million for Mountain Adventure Property Investments, a company in which Anderson had an indirect ownership interest and served as president and manager, according to the indictment.

Each loan exceeded Doughty’s individual lending authority and most were issued without bank loan committee or board approval, including a $580,000 loan to Anderson’s personal company, the indictment alleges.

Another scheme involved five $2.5 million loans for investments in the Altus-based Quartz Mountain Aerospace, Inc., which allegedly also exceeded Doughty’s lending authority.

If convicted, Doughty and Anderson face up to 30 years in prison and a $1 million fine on each count.

Doughty’s arraignment is set Friday and Anderson’s is on June 10. Doughty’s attorney, Robert Wyatt, did not immediately return a telephone call seeking comment. Court records do not indicate whether Anderson has an attorney.

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