Ponzi Scheme Earns Ban From CUs

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ALEXANDRIA, Va. – A former investment broker who stole more than $2 million from three Pittsburgh-area credit unions through a Ponzi scheme was barred last week from the credit union industry by NCUA.

The broker, Eugene Miley, 58, was sentenced to up to three years in prison for the scheme, which sold phony CDS to institutions and paid interest on the early sales to make it seem as if the CDs were legitimate.

As part of a plea bargain, Miley agreed to pay restitution to the credit unions, including $1.4 million to Moonlight CU, Worthington, Penn., $594,000 to Vantage CU, Wilkes Barre, Penn. and $99,000 to Stanwood CU, New Stanton, Penn.
                            

NCUA also banned Ira Rudin, a former employee of Central CU, who was convicted of embezzling $175,000 from the Rego Park, N.Y., credit union, and ordered him to pay that sum in restitution to Progressive CU, which acquired the troubled credit union.

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