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Converted CU's Stock Rises

NAPERVILLE, Ill.-Stock in Allied First Bancorp, Inc., converted recently from Allied Pilots Association FCU, has risen 10% in recent days, partially on the strength of a disclosure that a Michigan investor has accumulated almost 7% of the former credit union.

Brick and Associates, East Lansing, Mich., which provides asset liability management to financial institutions, said it has acquired 6.7%, or 431,000 shares, of the converted credit union at an average price of $10.51 a share.

Since then the stock has climbed to a high of $12.10 on thin over-the-counter trading, before settling back to $11.93, even though the investor disclaims any takeover intent.

Robert Clark, an analyst with Charlottesville, Va.-based SNL Securities, said the run-up in Allied First stock is typical of all six mutually owned thrifts that went public in December, because each began trading at a steep discount to book value, despite the strong financials reported by the thrift industry last year.

Each of the thrifts, he suggested, will eventually be a target for takeover, as was IGA FCU, the first converted credit union to go public. IGA, owned by parent company Jade Financial, was targeted by Wall Street speculators immediately after going public in October 1999, even though federal regulations required them to wait a year before selling out.

Online Resources Adopts Poison Pill

McLEAN, Va.-Online Resources, Inc., the Internet services provider for credit unions, has adopted a shareholder rights plan, known as a poison pill, aimed at making it prohibitively expensive for a predator to take over the firm.

The plan would automatically entitle common shareholders to acquire preferred shares at a steep discount once an entity has announced a bid to acquire more than 15% of the company.

Online Resources, whose sagging stock price has made it the subject of takeover rumors, said it does not know of any acquisition efforts.

COFCU Sees Paperless World

LAS VEGAS-Community One FCU said it has drastically reduced its paper by incorporating Bluepoint Solution, Inc.'s Receipt Manager, an electronic capture system that allows credit unions to eliminate multi-part paper receipts by capturing receipt data and member signatures electronically. The system also allows the credit union to capture electronic signatures at the teller window, increasing security by electronically comparing stored signatures.

Exec Pleads Guilty To Embezzlement

PEORIA, Ill.-The president of Members Choice Credit Union pleaded guilty recently to embezzling $96,000 from the credit union over a six-year period.

Michael Baker pleaded guilty to one count of bank fraud in connection with a scheme to apply interest and dividends earned by the credit union to his own account.

Baker faces up to 30 years in prison and $1 million in fines when sentenced April 26

Paralyzed Teller Sues Over Robbery

MOUNT DORA, Fla.-A former teller at United Southern Bank, who was shot and paralyzed during a 1999 robbery, is suing the security company over the incident.

Marishia Scott claims that Foreline Security, which provided security cameras in the banks, was negligent because it placed the cameras in plain view in the lobby, allowing the robber to know where they were located.

Scott was paralyzed when shot by gunman Fred Anderson, Jr., and her colleague, Heather Young, was killed.

Anderson was convicted and sentenced to death in the case.

Scott is asking for $15 million in damages in the case.

Suit Charges Auto Lender With Bias

INDIANAPOLIS-A group of black and Hispanic borrowers have charged Union Acceptance, a local auto finance company, with overcharging minorities on car loans.

The suits, filed in four states and the District of Columbia, allege the company secretly encouraged auto dealers to set interest rates higher for minorities after the company evaluated their credit histories on risk-based terms. The suits claim the alleged practices violated the Equal Credit Opportunity Act and asks for compensatory and punitive damages.

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