MONTPELIER, Vt. – Members of Vermont State Employees CU picketed the credit union’s headquarters this week in opposition to the board’s decision to terminate life insurance polices. The unique program provides matching life insurance coverage up to $5,000 for members who keep a savings account at the credit union. The Board voted to end the coverage as of Oct. 1. The members group is asking the Board to rescind its decision. Credit union officials were not available to comment yesterday.

NORTH CANTON, Ohio – Diebold, the world’s largest ATM manufacturer, announced yesterday it has ceased efforts to sell its troubled elections system subsidiary and will try to restructure the operation instead. The company said ongoing controversy about electronic voting, which has engaged the company in litigation, has made efforts to sell the operation difficult and no buyers have emerged. Doubts created by various legislative proposals on electronic voting, both at the local and federal levels, have caused the company to lower its revenue projections for the unit from $120 million for the year, down from $185 million to $215 million.

NEW YORK – Fifteen foreign nationals were indicted by a federal grand jury this week on charges of using a sophisticated credit fraud to drain more than $10 million out the nation’s biggest banks. The group produced fake driver’s licenses, resident alien cards, Social Security cards and tax identification documents to establish accounts at the banks in the names of fraudulent identities they called ‘chickens,’ according to the indictments. The accounts were used to obtain bank loans, mortgages, credit card and other debt at Citibank, HSBC, Washington Mutual and Bank of America that were defaulted on or used to buy millions of dollars worth of merchandise. Among those indicted as co-conspirators were: Naveed Ali Bhindar, known as the ‘Sheikh’; Ghulam Mehmoud, aka ‘Mama’; Quaiser Qureshi, ‘Auntie’; Arie Benshimon, ‘the Jewish guy’; Oscar Sanchez, ‘Bank of America’; and Pradipt Sharma, the ‘Citibank guy.’

SAN FRANCISCO – A consumer filed suit against Fidelity National Information Services and its Certegy subsidiary on behalf of an estimated 8.5 million consumers whose financial and personal data was stolen by an employee at Certegy Check Services. The suit, filed in federal court here, claims a senior database administrator appropriated the confidential information, then sold the data to direct marketing firms and data brokers who may have resold it to others. The suit was filed on behalf of a Los Angeles resident who noticed a major influx of direct marketing and promotional offers as well as phone calls to his home prior to announcement of the data breach. The suit alleges Certegy failed to implement and maintain adequate security measures to protect consumers’ confidential information.

JACKSONVILLE, Fla. – The wife of a sergeant in the Clay County Sheriff's Office was arrested Tuesday on charges she embezzled $79,000 from her employer, VyStar Credit Union. Police said Laura Gordon, 31, a member’s services representative, applied for loans in the name of her mother, grandfather and grandmother without their permission. Investigators said Gordon put the money in her own account and used it to pay her bills. He husband, Sgt. Shawn Gordon, was not involved in his wife's actions and remains on duty, according to the Sheriff’s Office.

BOEING, Kan. – Boeing Wichita CU said yesterday it has signed to brand 30 ATMs in local Walgreens stores, doubling the number of ATMs in the national drugstore chain. The credit union entered into a branding agreement with Welch Systems, which owns and operates ATMs in the area’s Walgreens stores. The credit union, which currently operates 28 ATMs, will brand 14 in Wichita, eight in Topeka and one each in Andover, Derby, Hutchinson, Salina, Newton, Emporia, Ottawa and Gardner.

MAPLE GROVE, Minn. – TopLine FCU is hoping to steal new members with an offer to top its competitors’ rates. With TopLine’s “Lower my Rate! Challenge” any consumer with a car, credit card or home loan can contact the credit union by phone or online and the CU will tell them if they can provide a better deal with a lower rate or payment. As part of the promotion, TopLine will donate $1 to Bridging Inc., a Minnesota non-profit that helps families in transition, for every 1% they save consumers.

PASADENA, Calif. – For the second year in a row, Wescom CU employees will work at the L.A. County Fair next week to build a Habitat for Humanity house. The home will be built at the county fair through the month of September, then moved to a permanent location. When finished, the house will be a three-bedroom, two-bath home for a family selected by Habitat for Humanity. Wescom is paying for construction costs and has committed more than 250 employee volunteers to help build the house. The credit union will have a webcam so members, employees and the public can watch the project at home.

LIMA, Peru – Several credit unions have been damaged by the massive earthquake that hit here Wednesday. Luis Jimenez, Peru Program Director for the World Council of Credit Unions, reported at least two branches, including one of San Cristobal de Huamanga CU, suffered extensive damage in the magnitude 8.0 quake. Peru has 163 credit unions serving 606,000 members. Jimenez said efforts by the National Credit Union Association of Peru (FENACREP) to aid in recovery have been hampered by road damage, but the trade group is working to distribute relief supplies, including food and blankets. The World Council has activated its Disaster Relief Fund to provide assistance to credit union staff and members through FENACREP. Send payments by check, credit card or wire to: Worldwide Foundation for Credit Unions, Inc., 5710 Mineral Point Road Madison, WI 53705 or go to www.woccu.org for online donations (click on “Support WOCCU”).

DUBUQUE, Iowa – As many as 20 credit unions and banks were notifying their members and customers yesterday that personal financial information stolen from a local merchant had been compromised and was being used to make fraudulent transactions. Officials at some of the credit unions were frustrated with Visa and MasterCard, which refused to identify the data breach. "They should be forced to tell us," said Robert Hoefer, president of Dupaco Community CU, who said fraudulent activity was discovered on at least 75 member MasterCard accounts. The $425 million credit union was forced to shut down members’ card transactions out of San Diego because some of the fraud was originating in Wal-Mart stores there, said Hoefer, whose personal card was on the compromised list. Representatives from about a dozen local credit unions and banks met earlier this week to exchange information and plans to stem the potential fraud. Alan Schuester, vice president of DuTrac Community CU, said they have identified as many as 2,000 MasterCard accounts that may be compromised but have not had any fraud reported yet. The credit union is notifying all of the affected members, he told The Credit Union Journal. The group believes the source of the data leak was a local retailer, but doesn’t know which one. Other institutions believed affected are: Dubuque Teachers CU, Alliant CU and Racom Community CU, as well as Fidelity Bank, Premier Bank, American Trust, Dubuque Bank and Trust and Liberty Bank. Hoefer estimated the group would have to reissue at least 100,000 cards.

DUBUQUE, Iowa – Area credit unions and banks are shutting down debit card accounts and issuing new ones in the face of a spreading identity theft scheme. Police say the theft was caused by unauthorized access to a local merchant’s credit card files. Dutrac Community CU is among those local institutions that are cancelling cards and reissuing new ones. But credit union officials said neither MasterCard or Visa will tell them who the responsible merchant is.

ATLANTA – Delta Community CU announced yesterday it is again going into partnership with LEVEL5 in a project to develop a new branch. The new branch will be located in Coweta County, an area southwest of Atlanta that is experiencing significant growth. LEVEL5 apparently chose the Newnan site because of its visibility, accessibility, and convenience to local residents and Delta Community CU members. The $2.5 billion credit union, the biggest in Georgia, was founded to serve employees of Delta Airlines but recently converted to a community charter.

TACOMA, Wash. – A woman who staked out at least three credit unions to help her accomplices rob the institutions was sentenced to two years behind bars for her role in the hold-ups. Deseri Garred, 28, scouted the credit unions, then reported the layout in the branches to Mitchell Friend, who used the information in three ‘takeover’ style robberies at Tapco CU, Community CU and America’s CU. The robbers made off with more than $132,000 in the three heists, including $82,000 in the July 2004 robbery at America’s CU. In March, Friend was sentenced to 19 years in prison for his role.

MANHATTAN BEACH, Calif. – Western FCU said yesterday it has signed with Symitar Systems, a unit of Jack Henry & Associates, to implement its Episys core processing system. The $1.2 billion credit union will install the in-house version of the system. With a merger pending between Western and Toyota FCU, currently a Symitar client, Episys will be the system for the merged entity.

POCATELLO – Community leaders gathered for the grand opening of the new Idaho Central CU headquarters in Chubbuck on Tuesday. As part of the festivities, officials with Idaho Power presented credit union representatives with a check for $100,000 because the facility's energy-efficient design is expected to save about 700,000 kilowatts of electricity per year compared to most other office buildings its size. A computer sensor regulates lighting, so on cloudy days it intensifies the indoor lighting. The building's heating and air conditioning system also is computer controlled. The floor tiles are raised about a foot and a half above the concrete beneath them. The space between is filled with cool air that is distributed by vents scattered across the floor which open when sensors indicate an area is too warm. Heating works much the same way. Idaho Power officials said the features will save enough energy to power 50 average size homes. The $600 million institution is the largest credit union in Idaho and serves 62,000 members.

SYLACAUGA, Ala. – Coosa Pines FCU plans to move from its current offices in downtown Childersburg to a new, 5,000 square-foot headquarters being built here. The credit union said it has outgrown its present location. The $160 million credit union was formed in 1950 to serve employees of the Kimberly-Clark paper mill, which recently saw its workforce reduced to 450. In 2002, the credit union converted to a community charter serving five surrounding counties.

JOPLIN, Kan. – Great Plains FCU is making the best of a difficult situation after a fire burned a hole through the roof and caused heavy smoke damage at one of its branches by offering members ‘hot’ rates on savings and loans. The $240 million credit union redesigned its website and has taken out an ad in the local newspaper touting its ‘fire sale’ after an overnight electrical fire last weekend shut its Salina branch and caused $75,000 in damage. While the branch is shut down, the credit union is taking several steps to reduce member inconvenience, including routing members and phone calls to another Salina branch located just 15 blocks away, which will offer extended hours and additional staff.

HONOLULU – A man charged with donning a variety of disguises to commit a dozen armed robberies–including three at the same branch of Hickam FCU–is scheduled to go on trial next month in federal court here. Michael Rosario is believed to be the ‘Master of Disguises’ bandit who carried out his robberies wearing ingenious disguises, such as a wounded soldier, a loudly dressed woman, a construction worker and a nurse in hospital scrubs. His disguises included fake beards and mustaches, wigs, make-up, even false breasts. Rosario is charged with 12 hold-ups, including five at different branches of Hickam FCU–three at the same credit union facility in Kapolei. He is also charged with hold-ups at Hawaii State FCU, Hawaii National Bank, American Savings Bank, Central Pacific Bank and at least one local store. The 41-year-old robbery suspect was identified by fingerprints left on demand note during a robbery a year ago at Central Pacific Bank. After his arrest Rosario was asked why he thought he could get away with the robberies and he said, "Because I had good disguises."

RESTON, Va. – Shareholders of student loan giant Sallie Mae overwhelmingly approved the $25 billion takeover of the company by a group of private equity firms and banks, but investor doubts continue on whether the deal will be consummated amid the growing crisis in the debt markets. Shares in the student lender continued to trade approximately 25% under the $60-a-share offer, reflecting buyer remorse over proposed cuts in federal aid to students. The buyers: J.C. Flowers & Co., Friedman Fleischer & Lowe, Bank of America and JP Morgan Chase, have notified Sallie Mae the proposed cuts could create a "material adverse impact" on the deal, allowing them to back out without paying the agreed-upon $900 million break-up fee.

WASHINGTON – The FDIC approved the merger of former credit union Synergy Financial into New York Community Bancorp., the two banks said yesterday–making the once Synergy FCU the 12th credit union to be eliminated after converting to a mutual savings bank. The $170 million deal will earn John Fiore, Synergy’s CEO, more than $4 million, and the three directors who engineered the 1998 conversion from a credit union more than $1 million each. Since converting to a bank, Synergy has increased its assets from $180 million to almost $1 billion. New York Community Bancorp has grown to $30 billion in assets by recent acquisitions of nine other local thrifts: Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank, CFS Bank, First Savings Bank of New Jersey, Ironbound Bank and Penn Federal Savings Bank. Synergy is the second credit union-convert to be gobbled up so far this year, with BUCS Savings Bank (formerly BUCS FCU) being acquired just four months ago. Synergy has been under pressure to sell since last year when a group of thrift speculators acquired a major stake in the bank’s stock and unceremoniously dumped Fiore from the board. Stockholders in the ex-credit union are scheduled to vote on the deal at a Sept. 18 special meeting. Sandler O'Neill & Partners LP, which underwrote Synergy's 2003 initial public offering, advised the ex-credit union on the deal.