40-Year Kiting Scheme Busted
ALEXANDRIA, Va.-A former teller and later branch manager of Utah Copper Employees CU, was barred from the credit union industry by NCUA, for her involvement in the longest-running fraud scheme in credit union history.
Barbara Coward was sentenced to almost four years in prison and ordered to pay $2.3 million in restitution to the credit union for a sophisticated loan-kiting scheme she operated over 40 years, from 1963, when she was hired as a teller, to 2003 when the scheme was uncovered, by which time she was branch manager.
Also banned from the industry was Connie Morris, a former vice president at Federal Building FCU, Memphis, Tenn., who embezzled more than $800,000 over four years from the credit union, most of which she used to pay off credit-card bills for her and her family.
Also banned were: Lisa Bramble, former bookkeeper of Sierra Central CU, Yuba City, Calif.; Latisha Davis, former teller at Weststar CU, Las Vegas; Denise Hill, former bookkeeper at Port of Houston Warehouse FCU, Houston; Al Kinsey, Jr., former chairman of the board at First Hialeah Community CU, Hialeah, Fla.; Anthony Staccone, former treasurer/manager at Lonza FCU, Williamsport, Pa.; and Douglas Wild, former president of Garden Savings FCU, Parsippany, N.J.
NCUA Loses Faith In 2 CUs
ALEXANDRIA, Va.-NCUA has shuttered St. John Baptist FCU, a tiny faith-based credit union serving parishioners at St. John Baptist Church in Scotch Plains, N.J.
It was the second faith-based credit union shut down by NCUA over the past few days, following Friday's liquidation of St. Charles Borromeo Church FCU, in New York City.
The assets of 47-year-old St. John Baptist FCU, just $68,000, and about 180 member accounts, were transferred to United Financial Services FCU, in Scotch Plains.
Fiserv Breaks Into Fortune 500
BROOKFIELD, Wis.-Fiserv Inc. has broken into the Fortune 500 ranking of the largest companies in the nation.
The financial and health benefits technology provider ranked 488 on the 2006 listing with $4.1 billion in total revenues, up 22 places from 510 in 2005. Fiserv is one of only three financial data service producers listed among the Fortune 500 firms and one of seven among the Fortune 1,000 companies.
Suspects Sought In Armed Robbery
OMAHA, Neb.-Three robbers made off with an undetermined amount of money in an armed hold-up at Nebraska Educators CU.
According to local news outlets, the suspects allegedly demanded money at gunpoint and then fled in a stolen Pontiac Bonneville with Iowa license plates that law enforcement later found abandoned.
Member Data Protection Discussed
ALEXANDRIA, Va.-In a Letter to Credit Unions, NCUA offered guidance on how to comply with the Security Guidelines included in the Gramm-Leach-Bliley Act and the Fair and Accurate Credit Transactions Act that call for protecting members' and other consumers' personal information.
Nonmembers could include someone who applies for but doest not obtain a loan, an individual who guarantees a loan or an employee or prospective employee.
NCUA said a CU must require its service providers that have access to consumer information to develop appropriate measures for the proper disposal of the information.
Ent Adds Commercial Insurance
COLORADO SPRINGS, Colo.-Ent FCU is offering a line of commercial insurance products. The $1.9-billion CU has also introduced an employee benefits program for its business members that will provide personal liability, property, life and related insurance products for employees. The new insurance services will be run out of Ent FCU's CUSO, Ent Insurance Group. The business insurance products will include general liability, worker's compensation, commercial liability, vehicle coverage, and an executive benefits program. The individual insurance program will include auto, home, rental, pet and life insurance, as well as short- and long-term disability and health insurance.
