NCUA Shutters Internet Gambling-Backed CU

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MESA, Ariz. – NCUA last night closed Vensure FCU, the credit union supported by Internet poker gambling that had been under federal conservatorship since April 15.

The NCUA action comes a week after authorities closed down Full Tilt Poker, one of the two online poker sites for which the $5 million credit union processed bets.

NCUA took Vensure under conservatorship April 15 hours after the U.S. Justice Department indicted a dozen international Internet gambling figures and froze $3 billion in 32 bank and credit union accounts, including $2 million at Vensure that was used to process bets at Full Tilt Poker and PokerStars. In taking over the credit union, NCUA said it had no loans and its only business was the processing of Internet bets in violation of the Unlawful Internet Gambling Enforcement Act.

NCUA said it made the decision to close Vensure FCU and discontinue its operation after determining the credit union was insolvent and has no prospects for restoring viable operations. At the time of liquidation the credit union served 140 members. 

Vensure is the 12th credit union failure so far in 2011.

 

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