CUNA Mutual, OPEIU OK New Four-Year Contract
MADISON, Wis.–CUNA Mutual Group and the Office of Professional Employees International Union Local 39 have reached an agreement on a new four-year contract. With a strained relationship, the agreement includes a commitment to build a better working relationship between the company and the union, in addition to across-the-board pay increases for represented employees of 2% in 2008 and 3% in each of the final three years of the contract; an increase in health care premium cost sharing, a renewal of the benefits plan, and a buyout program for longer-service employees.
Eligible employees can choose one of two payment options–a continuation of pay/benefits based on years of service, or a lump-sum payment, also based on years of service.
Eleven Plead Guilty to CU Membership Scam
CLARKSVILLE, Tenn.–Eleven people last week pled guilty to a scheme that posed individuals as members of the military or their families in order to gain access to Fort Campbell FCU’s first-time auto buying discount.
The group obtained membership to the defense credit union using fake identification and Social Security numbers, even though they were not eligible to join, according to indictments filed with the court. They also made false statements in loan applications and reported the incorrect amount of down payments to the dealership.
Robert Manigo, a former employee of Mathews Nissan, and James Elliot pled guilty to one count each of financial institution fraud in federal court last Tuesday.
Manigo told prosecutors he paid Elliot $100 for each customer he delivered to the dealership for the first-time buyer’s program to finance loans up to $10,000. Nine customers pled guilty to one count each of conspiracy.
Court Rebuffs Wells Fargo on Check 21 Patent
PLANO, Texas–PNC Financial said it agreed to settle a Check 21 patent infringement suit by paying millions of dollars in license fees to tiny DataTreasury, which has successfully sued dozens of other big banks and transaction processors.
The license deal comes just days after a federal appeals court in San Francisco refused to dismiss DataTreasury’s patent suit against Wells Fargo, one of several banks still being sued by the patent holder.
The deal also comes after a provision barring DataTreasury’s Check 21 suits was struck from a patent reform bill being debated in the Senate. The Senate provision would have protected banks from paying damages in any patent suit over a “check-collection system.” However, the main sponsor of the provision withdraw his support after it was opposed by the U.S. Patent Office, which told him that laws shouldn’t provide “exceptions to patent protection based on a particular technology.”
DataTreasury owns the patents on several key imaging technologies that are critical to the Check 21 process and has filed suit against many of the biggest banks and transaction processors. Many of the plaintiffs have entered into multi-million dollar license agreements with Data Treasury to use the technology, among them: JP Morgan Chase, Diebold, Merrill Lynch, RDM Corp. and Zions Bank’s NetDeposit unit.
But there still are several suits pending, including those against Wells Fargo and Bank of America.
Municipal Deposits Bid Dies
AUGUSTA, Maine–A bill that would have allowed state and municipal agencies to deposit funds in credit unions, as well as banks and thrifts, died Friday with the adjournment of the state legislature.
The bill had been introduced by the state treasurer and had been opposed by the powerful bank and thrift lobby.
Officials with the Maine CU League, which lobbied for the bill, said they were undecided whether to work for its reintroduction next year.
Ent FCU Awards $60,500 Grants
COLORADO SPRINGS, Colo.–Ent FCU announced the winning community organizations that will receive a total of $60,500 in Youth Endowment Series grants.
Among the winners were: the Alpine Autism Center; Big Brothers/Big Sisters; Children’s Literacy Center; Boys and Girls Club of the Pikes Peaks Region; Juvenile Diabetes Research Foundation; YMCA and Performing Arts for Youth Organization.
The $2.4-billion credit union has provided more than $300,000 in YES grants since the program’s inception in 2000.
FCUs Cannot Pay for CUSO Benefits
ALEXANDRIA, Va.–A federal credit union may not provide benefits to the employees of its CUSO, whether the CUSO is wholly owned or majority owned, NCUA said in a new legal opinion.
However, the credit union may obtain and administer benefits for the CUSO employees if the CUSO pays for the benefits, said the agency.
A federal credit union may provide employee benefits for a credit union employee who also performs some duties for the CUSO, but only for the duties the employee performs for the credit union.
Gang Member Sentenced to Life
DETROIT–One of six men charged in a 2001 armored car robbery at Dearborn FCU, which left a guard dead, last Tuesday was sentenced to prison with no chance of parole.
Earl Johnson, a 40-year-old former Ford Motor worker and member of an African-American motorcycle gang, was convicted in November of conspiracy and murder in the heist, when 30-year-old security guard Norman Stephens was shot dead.
Authorities believe the group was connected through its membership in the motorcycle gang.
The group made off with $204,000 from the armored truck, which was replenishing cash at the credit union’s ATM, and as much as $200,000 from another armored car robbery.
The other members of the gang have yet to be tried.
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