Phony CU Scam Returns
HELENA, Mont. - (08/02/04) -- Authorities said the fake creditunion scam has returned here with a vengeance, with a new set ofindividuals, believed to be Canadians, soliciting loans throughbogus credit unions. State regulators issued cease and desistorders Friday against four individuals for using the names oflegitimate U.S. credit unions and soliciting loans through them.The scheme is similar to one operated by two Toronto-area brotherswho were charged a month ago with a multi-state scam that solicitedhundreds of thousands of dollars from American consumers throughphony credit unions. The four Canadians named in the latest scamare: Cassandra Henry, Sarah Johnson, Kevin Walters and CherylBrewton, who authorities said are advertising loans through 'UnitedSavings CU,' Global CU,' and Sunrise Family CU,' all names oflegitimate credit unions. The phony credit unions use Canadiane-mail addresses and toll-free phone numbers fromCanada.