Authorities Fear Stolen Funds May Never Be Recovered
EASTLAKE, Ohio-Authorities are confirming they have concerns that millions of dollars in funds stolen from the now failed St. Paul Croatian FCU may never be recovered, even though Balkans underworld figure Koljo Nikolovski has agreed to forfeit $850,000 in an Albanian bank account as part of his plea agreement on fraud and money laundering charges in the 2010 collapse of the CU. Authorities said Nikolovski sent as much as $5.6 million to overseas banks, and the others involved in the scheme to defraud the CU also sent funds that are proving difficult to recover.
The loans were approved by Anthony Raguz, the CEO of the one-time $240-million credit union, in exchange for bribes from Koljo Nikolovski, according to authorities. Raguz, who admitted to approving more than 1,000 loans to more than 300 credit union members totaling $70 million, has pleaded guilty to fraud, bank bribery and money laundering in the case and is scheduled to be sentenced later this month.
The collapse of St. Paul Croatian is projected to cost the National CU Share Insurance Fund $170 million in losses, which would make it the biggest credit union fraud ever.
generations FCU To Open
5 Branches In H-E-B Stores
SAN ANTONIO-The $400-million generations FCU has agreed to open five branches in select H.E. Butt Grocery Co. (H-E-B) stores throughout San Antonio and Bexar County. The branches are scheduled to open on March 1.
8 CUs Sign On To Offer
Card Targeted At Hispanics
DES MOINES, Iowa-Coopera, the consulting arm of the Iowa CU League, said eight credit unions have signed on to begin offering the Coopera Card, a reloadable Visa prepaid card built specifically for the Hispanic community. The eight CUs are Amarillo Community FCU in Texas, United Services CU in North Carolina, Beacon FCU in Texas, KEE FCU in Nebraska, EECU in Texas, and Greater Iowa CU, Des Moines Metro CU in Iowa and Guardian CU, in Wisconsin.
CUMIS Reorganization Complete
MADISON, Wis.-CUNA Mutual Insurance Society (CUMIS) has completed its reorganization as a mutual insurance holding company structure. As a mutual insurance holding company, CMIS is changing its legal name to CMFG Life Insurance Company. The change does not reflect any change in control or ownership of the company.
Discounts For American Cars
FRAMINGHAM, Mass.-MetroWest Community FCU said that in honor of Presidents Day it will offer lower car loan rates for vehicles manufactured by American automakers Ford, GM and Chrysler during the week of Feb. 13-25. "With our country facing record debt and unemployment, I truly believe it's important to support our economy by buying American products," said CEO John Gallinagh.
Houston Chapter is 1st Winner
FARMERS BRANCH, Texas--The Houston Chapter of Credit Unions' "Experience a Houston Credit Union" initiative was named as the first recipient of the Texas CU League's new "12 of 2012" recognition program. 12 of 2012 is to be a year-long effort aimed at highlighting programs and people around the state. "Experience a Houston Credit Union" is an advertising cooperative that includes a dedicated website and brand campaign for CUs in the city, in addition to community and political outreach.
Coastal, First Tech Move Biz
RALEIGH, N.C.-Coastal FCU signed with CUSO Financial Services, LP, to provide investment services to members. The program will operate under the Coastal Wealth Management banner. The announcement came a day after CUSO Financial lost its contract with First Tech CU, which moved its investment program to Raymond James.
City Buys ICCU's Branch, Site
WATERLOO, Iowa-The City Council voted to purchase an Iowa Community CU branch for $814,000, to clear the way for construction of a planned $23-million indoor Cedar Valley SportsPlex. The city was forced to pay the CU's asking price, which also includes donating a former Happy Chef location-a property the city agreed to buy for $450,000 last week-so ICCU can construct a new building there. To expedite construction, the city will pay the credit union $52,900 to move now and operate in a temporary trailer while its new facility is erected. The credit union site is the last parcel the city needed to acquire and demolish to clear the way for the planned sports project.
Corporate Merger Is Approved
PARKERSBURG, W.Va.-Members of West Virginia Corporate CU overwhelmingly approved its combination with Volunteer Corporate CU, the final approval needed for the merger creating a $1.4-billion corporate serving 335 members. The majority of West Virginia members, 82%, agreed to invest in VolCorp perpetual contributed capital, using the same formula that was applied to previous VolCorp members.
FFFCU, Radio Station In Promo
WALL, N.J.-First Financial FCU is teaming with local radio station 94.3 The Point to give families the opportunity to win $1,000 each month to help pay their bills. Throughout the year, consumers 18 years and older can participate in the First Financial promotion at www.943thepoint.com and enter to win the monthly prize. A grand prize winner will be randomly selected each month.
Triple Points For Dining Out
ALEXANDRIA, Va.-Pentagon FCU said that effective Feb. 1, all members who use its PenFed Premium Travel Rewards American Express Card will earn three points per $1 spent on all their dining purchases, tripling the current rewards. The limited-time bonus point offer is in addition to the five points on airfare purchases and one point on all other purchases that members already earn every time they use the card. The minimum purchase is $10 and the maximum is $250.
Former Car Dealer Pleads Guilty
NORFOLK, Va.-A former car dealer last week pleaded guilty to charges of bilking Navy FCU out of $1.5 million in a used car scam. Jady Brooks, 39, of Atlanta, pleaded guilty to bank fraud and filing a false tax return. In 2008 and 2009, Brooks obtained 38 car loans totaling $1.5 million for cars that were never purchased. The borrowers who signed the loans split about half of the proceeds with Brooks, according to prosecutors. The borrowers, who were not identified, believed Brooks was getting them personal loans. Of the 38 borrowers, 12 have fully repaid the credit union and others have repaid part of their loans. Brooks is scheduled to be sentenced May 7.
Strong Results At Jack Henry
MONETT, Mo.-Jack Henry & Associates reported a 7% rise in net income for its fiscal second quarter yesterday, fueled by a 5% increase in revenues. The provider of back-office services for credit unions said second quarter revenues were $255.9 million, up from $242.6 million for the same period last year. Revenues for the company's core support and service operations advanced 6% to $225.6 million for the second quarter; while hardware sales rose 13% to $16.7 million; and license revenue declined 5% to $13.6 million.
