Unlicensed credit union's website shuts down after C&D order

California banking regulators have issued a cease and desist order against a proposed credit union in Santa Clara that purports to be operational but does not yet have full regulatory approval.

A Nov. 29 court document from the state’s Department of Business Oversight alleges Indian Federal Credit Union is violating the state’s financial code. Regulators say the Cu has no certificate to act and operate as a credit union in the state, nor has it applied for any such certificate.

IFCU’s homepage (which has been taken down since this story was first published Friday, Dec. 7) contains the word “proposed” just below the credit union’s name.

The credit union’s founder, listed in court documents as Atri Macherla, has 30 days from the date of the order to file an application for a hearing with the state banking commissioner.

Indian Federal Credit Union’s website lists a mission statement of “serv[ing] the financial interests of the Indian community and the communities which follow Indian culture, and/or spiritual path; who live, work, worship and/or own a business in the San Francisco Bay Area.”

Under “vision statement,” IFCU states it is “committed to provide a secure, fast and efficient financial platform for the Indian and Spiritual community in the ‘whole’ of United States of America.”

Macherla is described on the CU’s website as an “entrepreneur, global trade and supply chain consultant” and also the “founder and organizer” of Indian Federal Credit Union. The site further lists the purported institution’s board of directors, credit committee, executive committee and supervisory committee.

A spokesman for the National Credit Union Administration told Credit Union Journal by email that NCUA “is aware of an organization purporting to be the ‘Indian Federal Credit Union’ and cannot comment any further on pending investigations.”

Macherla initially declined Credit Union Journal's request for comment but emailed the following statement after this story was published:

"It was never my intention to represent my current project of launching the Indian Federal Credit Union as a functional bank; it has always been represented as a proposed project on the website www.indianfcu.org. However to eliminate any confusion, I have taken down the website for now and the page is currently under construction.

"I am in the process of setting up the Indian Federal Credit Union now. I will relaunch the website once we have all systems in place to conduct business and full approval. I am very excited about this project which will serve Indian Americans through the U.S."

This story was updated at 9:35 A.M. on Monday, Dec. 10, 2018.