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NCUF Officials Disburse $300K In New Orleans

NEW ORLEANS-Top executives with the National Federation of CDCUs last week visited here to distribute $300,000 in grants to help area community development credit unions rebuild from Hurricane Katrina. The grants were presented to ASI FCU, Total Community Action FCU, UNO (University of New Orleans) FCU and the African American CU Coalition from the Federation's new Community Development Relief and Rebuilding Fund. The funds will help those credit unions repair branches and other infrastructure badly damaged from Hurricane Katrina, according to Rafael Morales, spokesperson for the federation. The federation's fledgling fund has reached $750,000 from contributions from individuals, CDCUs, the National CU Foundation and the Shefa Fund, Morales told The Credit Union Journal.

Police Arrest Temp In Alleged HELC Scam

SAN FRANCISCO-Police last week raided a Johnson City, Tenn., hotel room and arrested a former contract worker for Embarcadero FCU who allegedly set up a phony $3.1-million home equity loan for himself while he worked at the San Francisco credit union.

David Read, 23, was an employee of OfficeTemp, a temporary staffing agency, when he allegedly created the fictitious loan to himself on his computer at the credit union, then transferred more than $300,000 to outside accounts in November and December. Read never returned to work after CU officials discovered the loan and froze access to the computer network. (c) 2006 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

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