FBI Now Hunting For Ex-CU CEO Turned Fugitive
CLEVELAND-The FBI has launched a nationwide search for Alex Spirikaitis, CEO of Taupa Lithuanian CU, in connection with a fraud that sunk the $24 million financial institution. "We have a lot to do, this is on the top of the list," Vicki Anderson, special agent for the FBI, told Credit Union Journal.
The hunt for the CEO fugitive began after authorities realized after a 17-hour stand-off outside the suspect's home that he was not inside. Anderson said local police had gone to the home in the evening and allowed Spirikaitis' family to leave while they asked him to come out. Circumstances at the home led police in the Cleveland suburb of Solon to believe the suspect was still inside, she said.
The Ohio Department of Commerce seized Taupa Lithuanian on July 15 and assigned NCUA as liquidating agent for the year's 12th credit union failure. Two CUs have reached out to TLCU members and offered help. Latvian Cleveland CU and Eaton Family CU said they are doing what they can to keep Taupa Lithuanian members in the CU movement.
Attorney Files New Round Of Lawsuits Over ADA
HOUSTON-A prolific plaintiffs' lawyer has filed a new slew of lawsuits alleging credit unions are violating Americans With Disabilities Act provisions requiring ATMs be accessible to the visually impaired. The new suits, naming South Texas Area Resources CU, America's CU, Cross Valley FCU, Neighborhood CU and Member's First CU, all were filed on behalf of legally blind consumers by Pittsburgh attorney R. Bruce Carlson, who has sued more than three-dozen CUs and dozens of banks under the ADA. The latest claims come as many are moving to settle the suits by agreeing to make the necessary upgrades to satisfy the ATM requirements of the ADA, without paying class action damages or fines, according to lawyers representing some of CUs.
NCUA Request Is Denied
LOS ANGELES-A federal court denied a request by NCUA to reconsider a March ruling dismissing the vast majority of $491 million of claims against Goldman Sachs for mortgage-backed securities the Wall Street bank sold to U.S. Central and WesCorp, the latest in a growing list of losses for NCUA's corporate suits. The ruling by the U.S. District Court for the Central District of California follows a ruling in federal court in Kansas dismissing NCUA's claims against Barclays and Credit Suisse for their sale of MBS to the two corporates.
40 CUs To Offer Health Insurance
DES MOINES, Iowa-More than 40 CUs in Iowa and Nebraska have contracted with CoOportunity Health to offer health insurance options for individuals, families and businesses starting this fall as part of efforts to address the Affordable Healthcare Act, or Obamacare. The CUs will be the exclusive FI distribution channel for CoOportunity Health when open enrollment for health insurance begins Oct. 1.
D+H Corp. Acquires Harland
TORONTO-Davis + Henderson Corp. last week said it has agreed to acquire Harland Financial Solutions for $1.2 billion U.S. in cash. D+H also acquired Mortgagebot and Avista Solutions in 2011.
NFCU Posts $439M In Income
VIENNA, Va.-Navy FCU reported last week that net income for the first six months of the year rose 20% over the same period in 2012 to a record $439 million. The record earnings equate to ROA of 1.6%. The $54.4 billion Navy Federal, the world's largest CU, had a $75.8 million increase in loan income for the first half of the year, accounting for all of the $73.3 million of increased net. Navy Federal added another 180,000 members in the first half of 2013, giving it a total of almost 4.4 million.
Corrections & Clarifications
A caption on page 50 in the July 1 issue of Credit Union Journal misspelled the name of Nina Rajcevic, winner of the Romeo Doty Scholarship from Xceed Financial CU. The scholarship was worth $1,000.
In Other News
Texas CAMELs To Be Disclosed
AUSTIN, Texas-The Texas CU Department said it will start telling state-chartered CUs their state their CAMEL codes beginning in September. Deputy CU Commissioner Dan Buckley said the department has always assigned separate CAMEL codes from NCUA, but has not disclosed them until now. The rating will remain the property of the department.
Meriwest, Habitats Combine To Help
SAN JOSE, Calif.-Meriwest CU has provided $35,000 in down payments for four families through a $140,000 Federal Home Loan Bank grant that enabled them each to purchase a new Habitat for Humanity home.
Habitat for Humanity of the East Bay & Silicon Valley originally acquired the small property next to a freeway sound wall, and it was a challenge for architects, who eventually created four 1,000 square-foot personal residences there.
Construction was completed by Habitat for Humanity volunteers and the friends and families of the selected residents.
The families selected for are required to contribute a minimum of 500 hours of their own "sweat equity" into their new homes.
