Rhode Island's Coastway CU Converts To Bank
CRANSTON, R.I.-Members of Coastway CU, the state's fourth largest credit union, voted overwhelmingly in favor of converting to a mutual savings bank.
The 89-year-old credit union said 78% of voting members favored the charter switch for the $300-million credit union.
More than 6,000 members-or 27% of the credit union membership-cast ballots, Coastway said.
The vote is subject to final certification by NCUA, and the conversion must approved by the R.I. Department of Business Regulation and the FDIC.
Coastway reported a $1.1-million loss for 2008 and a $126,843 operating loss for the first quarter of 2009.
Member Tried To Finance Wedding With Bad Check
SAN MATEO, Calif.-A judge has set a jury trial for a member of San Mateo CU who prosecutors say fraudulently withdrew $20,000 to finance her wedding but ended up spending her wedding day in county jail.
Prosecutors say 26-year-old Briana Balancier, who runs the Happy Little Hearts day care center in San Mateo, deposited a U.S. Bank check for $35,000 at her credit union March 3 and tried to withdraw the money three days later. Credit union officials told her she needed to wait 11 days unless U.S. Bank informed them that the check was valid.
That same day, the credit union received a fax that appeared to be from U.S. Bank approving the check. Balancier withdrew $20,000 over the next three days-$12,000 in cashier's checks and $8,000 in cash-and used the money to pay the wedding caterer, venue, disc jockey and photographer.
The check later bounced, and the credit union contacted U.S. Bank employees, who said the letter was a forgery.
Police arrested Balancier on March 19, two days before her wedding ceremony.
CU Launches Private Student Loans
PEMBROKE PINES, Fla.-Power Financial CU has introduced a low-rate private student loan product.
The Power Financial student loan boasts lower interest rates and no origination fees, providing students with significant cost-savings over other financing alternatives. The CU offers a maximum educational credit of $20,000, 60-month term with interest-only payment, a 10-year (120-month) repayment period and a variable rate as low as Prime-plus 3% which is adjusted annually.
Members United Shutters HSA CUSO
WARRENVILLE, Ill.-Members United Corporate FCU, struggling with huge losses on its investments, is closing down its Members Health Network CUSO for lack of funding just two years after launch.
Over the past several months, Members Health has attempted to raise additional capital directly from the credit union community to continue operations. It has been unsuccessful in gaining supporters, which is understandable given the costs surrounding the corporate stabilization plan and the uncertainties of a weakened economy, the corporate said.
NCUA Bans 7 Former CU Workers
ALEXANDRIA, Va.-NCUA has issued prohibition orders against:
* Robin E. Anderson, former branch manager of Advantage One CU, Morrison, Ill., who was convicted of bank fraud and sentenced to 27 months in prison, three years of supervised probation and ordered to pay $337,216 in restitution.
* Hong Kyu Chun, a former employee at Korean American Chamber of Commerce FCU, Bronx, N.Y., who was convicted of bank fraud and sentenced to six months house arrest, three years' probation and ordered to pay $70,000 in restitution.
* Nora Costlow, former manager of BMA CU, Mesquite, Texas, has consented to the order to avoid litigation.
* Renee Gooden, former temporary employee of Empower FCU, Syracuse, N.Y., was convicted of grand larceny and sentenced to four concurrent weekends in jail, five years of supervised release and ordered to pay $4,550 in restitution.
* Leah Louise Krueger, former employee of Reliant FCU, Casper, Wyo., pled guilty to larceny and received a suspended sentence of six to eight years, which will be vacated provided 10 years of supervised probation is successfully completed. Krueger was order to pay $90,000 in restitution.
* Nicola Graham-Perkins, former employee of North Broward Hospital District FCU, Fort Lauderdale, Fla., consented to entry of a prohibition order to avoid the time and cost of litigation.
* Kim Streibich, former employee of Silverado Credit Union, Mountain View, Calif., was convicted of grand theft and taking, damaging or destruction of property, and she was sentenced to nine months in jail and five years of supervised probation.
