The Daily News conducted a two-month investigation into Her Majesty's Credit Union (HMCU) in the Virgin Islands. It found that HMCU is operated by a man with a criminal history of financial schemes who uses multiple aliases. While the U.S. Securities and Exchange Commission is actively investigating HMCU, the Virgin Islands government has failed to properly regulate or oversee HMCU despite knowing for two years that it lacks rules for credit unions. Members' deposits are now inaccessible as HMCU's office is closed, demonstrating the government's failure to protect residents.
This letter from Elizabeth Warren urges President Obama to replace Mary Jo White as Chair of the Securities and Exchange Commission (SEC). It argues that White has undermined the SEC's mission of investor protection and transparency. Specifically, White has refused to develop rules requiring disclosure of corporate political spending despite widespread public and investor support. The letter urges Obama to exercise his authority to immediately designate another SEC commissioner as Chair in order to advance the administration's priorities.
Bitcoin's first week in El Salvador faced several issues including problems with the government-run Chivo app, unclear regulations, and a lack of cryptocurrency education for citizens. While some protests occurred, experts said political opponents exaggerated their size for political reasons and drowned out valid concerns like Bitcoin's volatility. Even for crypto-literate people, signing up for and using Chivo raised privacy and access issues due to the app's vague data sharing policy and inability to register without a Salvadoran ID number. Overall, the rollout faced challenges scaling up efforts to educate the unbanked population and provide regulatory clarity for existing businesses.
Preparing For The Changing Dynamics And Scope Of Federal Preemption In The Pr...Rachel Hamilton
Cheryl Slipski, EVP & General Counsel, TxVia, Inc., New York, NY
Robert Rowe, Vice President & Senior Counsel, Center for Regulatory Compliance, American Bankers Association, Washington, DC
Recent changes to federal laws and increased IRS scrutiny have prompted South Florida accountants to advise clients on smart financial practices. The Affordable Care Act and American Taxpayer Relief Act of 2012 have resulted in higher taxes for some. The IRS is also closely examining overseas bank accounts and claims of dependents. Accountants recommend establishing retirement accounts, investing in municipal bonds, and taking advantage of an IRS voluntary disclosure program for overseas accounts to reduce penalties. Meanwhile, overall mortgage lending has declined nationally due to increased regulations, though some local lenders have seen annual gains of 10% due to personalized service.
El Salvador adopt bitcoin as legal tender
The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.
Article 4 specifies that "tax contributions can be paid in #bitcoin." Article 5 that "exchanges in bitcoin will not be subject to capital gains tax, just like any legal tender." Article 6 preserves the use of $USD "for accounting purposes."
june 2021
The public image of the Kenyan Judiciary is at test yet again and its a little wonder whether its women that don’t have a place in the Judiciary or is it transparency and honesty itself.It’s only you to find out on www.kenyanlegal.com
In response to the financial crisis of 2008, the Dodd-Frank Act included the creation of the Consumer Financial Protection Bureau (CFPB) to ensure that banks, lenders, and financial companies treat consumers fairly by providing greater protection and establishing rights to consumers of financial products. Is that purpose and role now in jeopardy?
Mayor, other leaders brace for conflict over police-fire pensionDavid Hunt
The mayor of Jacksonville and other city leaders are preparing for conflict with police and firefighter unions over reforms to their pension plans. The pension plans are underfunded by $1.2 billion and are projected to cost the city $110 million next year, or 10% of the general fund budget. The mayor wants to reduce pension benefits to address the growing costs, but the unions strongly oppose any cuts to benefits and say the city is responsible for properly funding the plans. Negotiations over changes are expected to be difficult with the unions having political influence through campaign support of candidates who back their positions.
This letter from Elizabeth Warren urges President Obama to replace Mary Jo White as Chair of the Securities and Exchange Commission (SEC). It argues that White has undermined the SEC's mission of investor protection and transparency. Specifically, White has refused to develop rules requiring disclosure of corporate political spending despite widespread public and investor support. The letter urges Obama to exercise his authority to immediately designate another SEC commissioner as Chair in order to advance the administration's priorities.
Bitcoin's first week in El Salvador faced several issues including problems with the government-run Chivo app, unclear regulations, and a lack of cryptocurrency education for citizens. While some protests occurred, experts said political opponents exaggerated their size for political reasons and drowned out valid concerns like Bitcoin's volatility. Even for crypto-literate people, signing up for and using Chivo raised privacy and access issues due to the app's vague data sharing policy and inability to register without a Salvadoran ID number. Overall, the rollout faced challenges scaling up efforts to educate the unbanked population and provide regulatory clarity for existing businesses.
Preparing For The Changing Dynamics And Scope Of Federal Preemption In The Pr...Rachel Hamilton
Cheryl Slipski, EVP & General Counsel, TxVia, Inc., New York, NY
Robert Rowe, Vice President & Senior Counsel, Center for Regulatory Compliance, American Bankers Association, Washington, DC
Recent changes to federal laws and increased IRS scrutiny have prompted South Florida accountants to advise clients on smart financial practices. The Affordable Care Act and American Taxpayer Relief Act of 2012 have resulted in higher taxes for some. The IRS is also closely examining overseas bank accounts and claims of dependents. Accountants recommend establishing retirement accounts, investing in municipal bonds, and taking advantage of an IRS voluntary disclosure program for overseas accounts to reduce penalties. Meanwhile, overall mortgage lending has declined nationally due to increased regulations, though some local lenders have seen annual gains of 10% due to personalized service.
El Salvador adopt bitcoin as legal tender
The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.
Article 4 specifies that "tax contributions can be paid in #bitcoin." Article 5 that "exchanges in bitcoin will not be subject to capital gains tax, just like any legal tender." Article 6 preserves the use of $USD "for accounting purposes."
june 2021
The public image of the Kenyan Judiciary is at test yet again and its a little wonder whether its women that don’t have a place in the Judiciary or is it transparency and honesty itself.It’s only you to find out on www.kenyanlegal.com
In response to the financial crisis of 2008, the Dodd-Frank Act included the creation of the Consumer Financial Protection Bureau (CFPB) to ensure that banks, lenders, and financial companies treat consumers fairly by providing greater protection and establishing rights to consumers of financial products. Is that purpose and role now in jeopardy?
Mayor, other leaders brace for conflict over police-fire pensionDavid Hunt
The mayor of Jacksonville and other city leaders are preparing for conflict with police and firefighter unions over reforms to their pension plans. The pension plans are underfunded by $1.2 billion and are projected to cost the city $110 million next year, or 10% of the general fund budget. The mayor wants to reduce pension benefits to address the growing costs, but the unions strongly oppose any cuts to benefits and say the city is responsible for properly funding the plans. Negotiations over changes are expected to be difficult with the unions having political influence through campaign support of candidates who back their positions.
Puerto Rico resident commissioner’s bid to win Chapter 9 status for commonwea...Chuck Stanley
Puerto Rico's resident commissioner Pedro Pierluisi says there is little chance Congress will extend Chapter 9 bankruptcy protections to Puerto Rico's public corporations, despite his claims of strong support. A bankruptcy policy expert says it is unlikely and would not pass currently. Pierluisi remains adamant that he has support for a bill in the House Judiciary Committee that would amend bankruptcy laws. He expects to file a bill within two weeks that would extend Chapter 9 access to Puerto Rico's municipalities and public corporations.
This document provides information about a company called Harris & Harris Ltd. that specializes in public sector contracting and project management. It lists the services Harris & Harris provides such as bid response submission, project management, regulatory compliance, and media relations. It also lists the types of public entities they work with such as federal, state, county, and municipal agencies. The document then provides details of Harris & Harris' experience working with various government clients and some of their significant achievements in helping governments increase revenue collection.
The Supreme Court ruled unanimously in favor of McCulloch against Maryland, finding that Maryland could not tax the national bank as it was an instrument of the federal government established through constitutional powers. The Court rejected Maryland's argument that it had the authority to tax any business within its borders or that the Constitution did not allow for a national bank. The ruling established that states do not have the power to impede or burden operations of constitutional laws enacted by Congress to carry out federal powers.
- The 132nd Ohio General Assembly began on Tuesday with new and returning members taking their oaths of office. Two new members, Rep. Dave Greenspan and Rep. Scott Wiggam, have prior experience as county officials.
- Legislative leaders from both chambers emphasized the importance of bipartisan cooperation to address issues and move the state forward. Lawmakers will focus on the upcoming biennial budget in the coming months.
- Governor Kasich vetoed sales tax exemptions included in SB 235 for oil and gas companies and digital jukeboxes, which would have cost state and local governments over $264 million in revenue. This issue and disagreements over severance taxes will likely continue into budget discussions.
Economists See Clouds in the Silver LiningYardi Matrix
Download the full report: https://goo.gl/5jwDS5
At a time when optimism is rampant in the real estate industry, and the stock market is near all-time highs after a massive run-up, economists lived up to their billing as dismal scientists at the National Association of Business Economists (NABE) annual policy conference in Washington, D.C., last week.
Although the immediate state of the economy is healthy, economists lamented the country’s long-term fiscal situation, recently made worse by the tax reform passed by Congress. They were also pessimistic about the prospects for policy solutions, which include prudent immigration reform and fewer—not more—restrictions on global trade, given the growing populism that is producing an electorate with increasingly polarized views in the U.S. and Europe.
“I’m concerned that the political system has not come to grips with sensible fiscal policy,” said Alice Rivlin, a senior fellow at the Brookings Institution and former vice chair of the Federal Reserve and director of the White House Office of Management and Budget.
Considerations for US Employers Post-Defence of Marriage Act (DOMA) National ...Annette Wright, GBA, GBDS
The Supreme Court's decision in U.S. v. Windsor invalidated the federal definition of marriage and spouse under the Defense of Marriage Act (DOMA), altering employer obligations regarding same-sex marriages. The decision will require employers to provide same-sex spouses equal access to benefits like health insurance, family medical leave, COBRA, and pension plans. However, many questions remain unanswered, like which state's marriage recognition laws will determine federal benefits and whether benefits will apply retroactively. Employers should begin reviewing policies to identify changes needed to comply with the new landscape while guidance is still pending on open issues.
Carr Maloney PC is a litigation firm providing legal services throughout the mid-Atlantic region. The firm helps businesses and individuals meet all of their legal needs by simplifying complex issues. The document discusses recent litigation and regulatory issues affecting for-profit higher education institutions, including increased potential for class action lawsuits against institutions due to new Department of Education regulations prohibiting mandatory arbitration clauses and internal grievance procedures. It also summarizes ongoing litigation seeking more transparency in the USCIS H-1B visa petition process.
Full text of the Supreme Court's 6-3 Obamacare rulingDaniel Roth
Chief Justice John Roberts: “Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them.. IIf at all possible, we must interpret the act in a way that is consistent with the former, and avoids the latter.”
Scalia: "“We should start calling this law ‘SCOTUScare"
The Case for AAA Underlying Municipal Bondsmauiwelch
This document provides an overview of the municipal bond market and makes a case for investing in bonds with underlying AAA credit ratings from states and municipalities. It notes that there is currently limited supply of bonds directly rated AAA. The strategy proposed is to create a portfolio of only AAA-rated underlying bonds to take advantage of their strong credit quality and limited supply. Key data on default rates and credit fundamentals are presented for AAA-rated states and municipalities to demonstrate the historically strong credit performance of these issues.
A federal jury found that racetrack owner John Johnston bribed former Illinois Governor Rod Blagojevich to pass legislation in 2008 favoring the racetrack industry. As a result of this pay-to-play scheme, four riverboat casinos will receive $81.8 million in damages from Johnston. The jury's verdict upheld the casinos' lawsuit alleging that Blagojevich signed the 2008 Horse Racing Act in exchange for a $100,000 campaign contribution promised by Johnston on behalf of the racetrack industry. The damages awarded include $25.9 million in compensatory damages that will be trebled to $77.8 million under RICO statutes, as well as $1 million in punitive damages from
This document provides an introduction to a case involving alleged fraudulent activity by Lennar Corporation. It summarizes that Lennar entered into a joint venture agreement in 1997 to develop a property, but in 1999 wired the entire $37.5 million capital contribution from the other partner to one of Lennar's subsidiaries, violating the agreement. It notes Lennar's pattern of lawsuits against smaller partners and accusations that it uses litigation to delay payments and intimidate opponents.
The document discusses issues with the US home mortgage system, including the high number of homeowners who owe more than their home is worth or are delinquent on payments. It notes that Fannie Mae and Freddie Mac are urging struggling homeowners not to default, but also threatening consequences. It then describes services offered to help homeowners negotiate mortgage reductions through forensic loan audits to identify lender violations, which can strengthen the homeowner's position. Key details include fees for these services and how the mortgage reduction process works.
Federal laws and regulations intended to detect criminal activity have made it difficult for legal cannabis businesses to obtain banking services, despite operating legally under state laws. This creates public safety issues as businesses deal in large amounts of cash. In response, federal guidance was issued in 2014 by the DOJ and FinCEN clarifying how financial institutions can serve cannabis businesses in compliance with priorities focused on preventing diversion, criminal enterprises, and other issues. However, most banks remain hesitant due to money laundering statutes and obligations to monitor customers. Bipartisan legislation has been introduced to provide a safe harbor for banks working with legal cannabis businesses.
The document discusses recent legislative activity in Congress and regulatory actions by federal agencies. It covers topics such as the fiscal cliff negotiations, defense appropriations, agriculture issues including a potential one-year farm bill extension, education reforms, and energy policies including a natural gas export study. Upcoming hearings are also noted on various topics.
The document discusses proposed legislation in Colorado that would eliminate various business tax credits and exemptions, generating $145 million in additional tax revenue for the state. The bills are aimed at addressing Colorado's $1 billion budget shortfall but are worrying small business owners who fear they will be overburdened. While supporters say the bills target loopholes and special interests, critics argue the bills will hurt innovation, job creation, and small businesses.
The document discusses America's growing debt problem and some potential solutions. It outlines several "hidden debt bombs" not captured in official debt figures, such as losses from Fannie Mae and Freddie Mac, unfunded promises for Social Security and Medicare, and reduced tax revenue from tax breaks. Some proposed solutions mentioned include raising the Social Security retirement age, reducing health insurance tax breaks, broadening the tax base, and considering new revenue options like a value-added tax.
The world of due diligence is designed to be predictable and stable – but change is inevitable. This presentation reviews the changes facing modern due diligence and provides strategies to best manage these updates. CT’s expert consultant will specifically discuss changes in Delaware corporate law, due diligence recordings, case law, and cyber due diligence.
Learn About:
Changes and updates to statutory law
Cybersecurity / due diligence
UCC-3 Issues
General Motors case and terminations
- Illinois is facing a $15 billion budget deficit and the state legislature has approved a 66% income tax increase to help address it.
- The tax increase will help the state pay off unpaid bills that have driven some companies bankrupt. However, the tax increase could drive some businesses to neighboring states with lower taxes.
- Neighboring state governors see the tax increase as an opportunity to attract more businesses across state borders, further pressuring Illinois' economy.
Consumer protections exist to prevent fraud, usury, extortion and other financial crimes. Since individuals are not always aware of commercial and legal details surrounding transactions and business communications, undesirable and underhanded access to the wallets and bank accounts of unsuspecting people becomes possible.
While there are increasing signs of a recovery from the Great Recession, years of economic progress have vanished for many African Americans and Hispanics in particular, and home ownership remains largely out of reach. That has put new energy into efforts to ensure that the economic turnaround is more inclusive.
“The CFPB’s work in the area of fair lending is a priority and has only just begun,” the agency declared. In this presentation, we walk you through some of its biggest impacts.
To learn how you can stay current in today’s rapidly changing banking and financial industries, visit http://www.lexisnexis.com/banking.
For more topics that are transforming the legal industry,
visit http://www.thisisreallaw.com.
Puerto Rico resident commissioner’s bid to win Chapter 9 status for commonwea...Chuck Stanley
Puerto Rico's resident commissioner Pedro Pierluisi says there is little chance Congress will extend Chapter 9 bankruptcy protections to Puerto Rico's public corporations, despite his claims of strong support. A bankruptcy policy expert says it is unlikely and would not pass currently. Pierluisi remains adamant that he has support for a bill in the House Judiciary Committee that would amend bankruptcy laws. He expects to file a bill within two weeks that would extend Chapter 9 access to Puerto Rico's municipalities and public corporations.
This document provides information about a company called Harris & Harris Ltd. that specializes in public sector contracting and project management. It lists the services Harris & Harris provides such as bid response submission, project management, regulatory compliance, and media relations. It also lists the types of public entities they work with such as federal, state, county, and municipal agencies. The document then provides details of Harris & Harris' experience working with various government clients and some of their significant achievements in helping governments increase revenue collection.
The Supreme Court ruled unanimously in favor of McCulloch against Maryland, finding that Maryland could not tax the national bank as it was an instrument of the federal government established through constitutional powers. The Court rejected Maryland's argument that it had the authority to tax any business within its borders or that the Constitution did not allow for a national bank. The ruling established that states do not have the power to impede or burden operations of constitutional laws enacted by Congress to carry out federal powers.
- The 132nd Ohio General Assembly began on Tuesday with new and returning members taking their oaths of office. Two new members, Rep. Dave Greenspan and Rep. Scott Wiggam, have prior experience as county officials.
- Legislative leaders from both chambers emphasized the importance of bipartisan cooperation to address issues and move the state forward. Lawmakers will focus on the upcoming biennial budget in the coming months.
- Governor Kasich vetoed sales tax exemptions included in SB 235 for oil and gas companies and digital jukeboxes, which would have cost state and local governments over $264 million in revenue. This issue and disagreements over severance taxes will likely continue into budget discussions.
Economists See Clouds in the Silver LiningYardi Matrix
Download the full report: https://goo.gl/5jwDS5
At a time when optimism is rampant in the real estate industry, and the stock market is near all-time highs after a massive run-up, economists lived up to their billing as dismal scientists at the National Association of Business Economists (NABE) annual policy conference in Washington, D.C., last week.
Although the immediate state of the economy is healthy, economists lamented the country’s long-term fiscal situation, recently made worse by the tax reform passed by Congress. They were also pessimistic about the prospects for policy solutions, which include prudent immigration reform and fewer—not more—restrictions on global trade, given the growing populism that is producing an electorate with increasingly polarized views in the U.S. and Europe.
“I’m concerned that the political system has not come to grips with sensible fiscal policy,” said Alice Rivlin, a senior fellow at the Brookings Institution and former vice chair of the Federal Reserve and director of the White House Office of Management and Budget.
Considerations for US Employers Post-Defence of Marriage Act (DOMA) National ...Annette Wright, GBA, GBDS
The Supreme Court's decision in U.S. v. Windsor invalidated the federal definition of marriage and spouse under the Defense of Marriage Act (DOMA), altering employer obligations regarding same-sex marriages. The decision will require employers to provide same-sex spouses equal access to benefits like health insurance, family medical leave, COBRA, and pension plans. However, many questions remain unanswered, like which state's marriage recognition laws will determine federal benefits and whether benefits will apply retroactively. Employers should begin reviewing policies to identify changes needed to comply with the new landscape while guidance is still pending on open issues.
Carr Maloney PC is a litigation firm providing legal services throughout the mid-Atlantic region. The firm helps businesses and individuals meet all of their legal needs by simplifying complex issues. The document discusses recent litigation and regulatory issues affecting for-profit higher education institutions, including increased potential for class action lawsuits against institutions due to new Department of Education regulations prohibiting mandatory arbitration clauses and internal grievance procedures. It also summarizes ongoing litigation seeking more transparency in the USCIS H-1B visa petition process.
Full text of the Supreme Court's 6-3 Obamacare rulingDaniel Roth
Chief Justice John Roberts: “Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them.. IIf at all possible, we must interpret the act in a way that is consistent with the former, and avoids the latter.”
Scalia: "“We should start calling this law ‘SCOTUScare"
The Case for AAA Underlying Municipal Bondsmauiwelch
This document provides an overview of the municipal bond market and makes a case for investing in bonds with underlying AAA credit ratings from states and municipalities. It notes that there is currently limited supply of bonds directly rated AAA. The strategy proposed is to create a portfolio of only AAA-rated underlying bonds to take advantage of their strong credit quality and limited supply. Key data on default rates and credit fundamentals are presented for AAA-rated states and municipalities to demonstrate the historically strong credit performance of these issues.
A federal jury found that racetrack owner John Johnston bribed former Illinois Governor Rod Blagojevich to pass legislation in 2008 favoring the racetrack industry. As a result of this pay-to-play scheme, four riverboat casinos will receive $81.8 million in damages from Johnston. The jury's verdict upheld the casinos' lawsuit alleging that Blagojevich signed the 2008 Horse Racing Act in exchange for a $100,000 campaign contribution promised by Johnston on behalf of the racetrack industry. The damages awarded include $25.9 million in compensatory damages that will be trebled to $77.8 million under RICO statutes, as well as $1 million in punitive damages from
This document provides an introduction to a case involving alleged fraudulent activity by Lennar Corporation. It summarizes that Lennar entered into a joint venture agreement in 1997 to develop a property, but in 1999 wired the entire $37.5 million capital contribution from the other partner to one of Lennar's subsidiaries, violating the agreement. It notes Lennar's pattern of lawsuits against smaller partners and accusations that it uses litigation to delay payments and intimidate opponents.
The document discusses issues with the US home mortgage system, including the high number of homeowners who owe more than their home is worth or are delinquent on payments. It notes that Fannie Mae and Freddie Mac are urging struggling homeowners not to default, but also threatening consequences. It then describes services offered to help homeowners negotiate mortgage reductions through forensic loan audits to identify lender violations, which can strengthen the homeowner's position. Key details include fees for these services and how the mortgage reduction process works.
Federal laws and regulations intended to detect criminal activity have made it difficult for legal cannabis businesses to obtain banking services, despite operating legally under state laws. This creates public safety issues as businesses deal in large amounts of cash. In response, federal guidance was issued in 2014 by the DOJ and FinCEN clarifying how financial institutions can serve cannabis businesses in compliance with priorities focused on preventing diversion, criminal enterprises, and other issues. However, most banks remain hesitant due to money laundering statutes and obligations to monitor customers. Bipartisan legislation has been introduced to provide a safe harbor for banks working with legal cannabis businesses.
The document discusses recent legislative activity in Congress and regulatory actions by federal agencies. It covers topics such as the fiscal cliff negotiations, defense appropriations, agriculture issues including a potential one-year farm bill extension, education reforms, and energy policies including a natural gas export study. Upcoming hearings are also noted on various topics.
The document discusses proposed legislation in Colorado that would eliminate various business tax credits and exemptions, generating $145 million in additional tax revenue for the state. The bills are aimed at addressing Colorado's $1 billion budget shortfall but are worrying small business owners who fear they will be overburdened. While supporters say the bills target loopholes and special interests, critics argue the bills will hurt innovation, job creation, and small businesses.
The document discusses America's growing debt problem and some potential solutions. It outlines several "hidden debt bombs" not captured in official debt figures, such as losses from Fannie Mae and Freddie Mac, unfunded promises for Social Security and Medicare, and reduced tax revenue from tax breaks. Some proposed solutions mentioned include raising the Social Security retirement age, reducing health insurance tax breaks, broadening the tax base, and considering new revenue options like a value-added tax.
The world of due diligence is designed to be predictable and stable – but change is inevitable. This presentation reviews the changes facing modern due diligence and provides strategies to best manage these updates. CT’s expert consultant will specifically discuss changes in Delaware corporate law, due diligence recordings, case law, and cyber due diligence.
Learn About:
Changes and updates to statutory law
Cybersecurity / due diligence
UCC-3 Issues
General Motors case and terminations
- Illinois is facing a $15 billion budget deficit and the state legislature has approved a 66% income tax increase to help address it.
- The tax increase will help the state pay off unpaid bills that have driven some companies bankrupt. However, the tax increase could drive some businesses to neighboring states with lower taxes.
- Neighboring state governors see the tax increase as an opportunity to attract more businesses across state borders, further pressuring Illinois' economy.
Consumer protections exist to prevent fraud, usury, extortion and other financial crimes. Since individuals are not always aware of commercial and legal details surrounding transactions and business communications, undesirable and underhanded access to the wallets and bank accounts of unsuspecting people becomes possible.
While there are increasing signs of a recovery from the Great Recession, years of economic progress have vanished for many African Americans and Hispanics in particular, and home ownership remains largely out of reach. That has put new energy into efforts to ensure that the economic turnaround is more inclusive.
“The CFPB’s work in the area of fair lending is a priority and has only just begun,” the agency declared. In this presentation, we walk you through some of its biggest impacts.
To learn how you can stay current in today’s rapidly changing banking and financial industries, visit http://www.lexisnexis.com/banking.
For more topics that are transforming the legal industry,
visit http://www.thisisreallaw.com.
CBI Comments to FinCEN on Beneficial Ownership of CpativesJasonSchupp1
In response to this ANPR, CBI draws FinCEN’s attention to how U.S. domiciled captive insurance companies may interact with the provisions and intent of the Corporate Transparency Act (CTA).
1) The document provides definitions and explanations of key concepts related to banking including the definition of banking, banking companies, statutes governing banking companies, and functions of banks.
2) It explains that banking companies accept deposits and use the money to make loans. Their main function is to channel money from savers to borrowers. Various laws at both the federal and state level regulate banking companies.
3) The document also describes the system of bookkeeping used in banks including the general ledger, subsidiary books like cash books, purchase books and sales books, as well as bills receivable and payable books. Maintaining accurate accounting records is important for banks.
JOBS Act Rulemaking Comments on SEC File Number S7-11-13 Dated July 26, 2014Jason Coombs
The letter is from the co-founder and CEO of Public Startup Company to the SEC regarding Title IV of the JOBS Act and Regulation A+. It argues that Title IV must preempt state securities regulation to allow direct investment between individuals and restore freedom of communication and equity investment relationships. It criticizes the SEC for failing to enact JOBS Act rules as mandated by Congress and for investigating the company when it tried to use Regulation D Rule 506(c). The letter urges the SEC to stop aiding banks and declare all people as equity-worthy to establish a viable market for Regulation A+ securities.
The document is a newsletter from Senator Dick Saslaw providing an update on legislation from the 2015 session of the Virginia General Assembly. It discusses bills passed relating to sales tax holidays, sexual assault on college campuses, transportation network companies like Uber and Lyft, industrial hemp research, autism coverage, and ethics reforms. It also lists some bills that failed to pass and other issues considered by the legislature.
As the United States has become both a tax and privacy haven, wealthy families from around the world are seeking U.S. trust solutions. This webinar examined various worldwide factors for this historic movement of money into the United States, including FACTA, CRS, secrecy vs. privacy, and asset protection. This presentation also considered and objectively compared U.S. trust jurisdictions, accentuating the vital importance of selecting the correct U.S. trust situs for international families. The presentation concluded with a discussion of various privacy, tax, and asset protection planning tools available to international families in the United States.
The Federal False Claims Act and Georgia's Two False Claims ActsMichael Sullivan
The document discusses Georgia's False Claims Acts, which allow individuals to file lawsuits on behalf of the government when they have evidence of fraud against taxpayer funds. It summarizes Georgia's 2012 Taxpayer Protection False Claims Act, which expanded an earlier 2007 law to protect all state and local government spending from fraud. The new law aims to deter fraud and recover funds like the successful federal False Claims Act, following amendments to increase its effectiveness. The Attorney General's office will review cases filed under the Act to ensure only meritorious cases move forward.
Fundamental forces-of-change-in-banking2869Pankaj Kumar
The document discusses the fundamental forces that have transformed the banking industry over time. It describes how regulations originally separated commercial banking, investment banking, and insurance but how deregulation and other forces have blurred industry lines. Technological advances, financial innovation, and increased competition have changed the nature of banking and what constitutes a bank. Regulations that once protected smaller banks now hamper their ability to diversify and compete against larger, non-bank financial institutions.
This document summarizes the ongoing efforts by some local governments in Virginia to disfranchise voters through issuing debt in ways that evade citizen oversight and approval requirements. It notes that Virginia's constitution contains important safeguards requiring voter approval for certain types of long-term borrowing to prevent overburdening taxpayers. However, some local governments are undermining these protections by using financial instruments like lease-revenue bonds that functionally operate as general obligation debt but avoid voter referendums. This erosion of citizen oversight damages trust in government and risks overcommitting taxpayers to debt. The document calls on Virginia's legislature to close loopholes and restore meaningful citizen control over local borrowing.
Chapter 20Consumer Credit TransactionsL E A R N I N G .docxketurahhazelhurst
Chapter 20
Consumer Credit Transactions
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should understand the following:
1. How consumers enter into credit transactions and what protections they
are afforded when they do
2. What rights consumers have after they have entered into a consumer
transaction
3. What debt collection practices third-party collectors may pursue
This chapter and the three that follow are devoted to debtor-creditor relations. In
this chapter, we focus on the consumer credit transaction. Chapter 21 "Secured
Transactions and Suretyship" and Chapter 22 "Mortgages and Nonconsensual
Liens" explore different types of security that a creditor might require. Chapter 23
"Bankruptcy" examines debtors’ and creditors’ rights under bankruptcy law.
The amount of consumer debt, or household debt1, owed by Americans to
mortgage lenders, stores, automobile dealers, and other merchants who sell on
credit is difficult to ascertain. One reads that the average household credit card debt
(not including mortgages, auto loans, and student loans) in 2009 was almost
$16,000.Ben Woolsey and Matt Schulz, Credit Card Statistics, Industry Statistics, Debt
Statistics, August 24, 2010, http://www.creditcards.com/credit-card-news/credit-
card-industry-facts-personal-debt-statistics-1276.php. This is “calculated by
dividing the total revolving debt in the U.S. ($852.6 billion as of March 2010 data, as
listed in the Federal Reserve’s May 2010 report on consumer credit) by the
estimated number of households carrying credit card debt (54 million).” Or maybe
it was $10,000.Deborah Fowles, “Your Monthly Credit Card Minimum Payments May
Double,” About.com Financial Planning, http://financialplan.about.com/od/
creditcarddebt/a/CCMinimums.htm. Or maybe it was $7,300.Index Credit Cards,
Credit Card Debt, February 9, 2010, http://www.indexcreditcards.com/
creditcarddebt. But probably focusing on the average household debt is not very
helpful: 55 percent of households have no credit card debt at all, and the median
debt is $1,900.Liz Pulliam Weston, “The Big Lie about Credit Card Debt,” MSN Money,
July 30, 2007.
1. Debt owed by consumers.
726
http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php
http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php
http://financialplan.about.com/od/creditcarddebt/a/CCMinimums.htm
http://financialplan.about.com/od/creditcarddebt/a/CCMinimums.htm
http://www.indexcreditcards.com/creditcarddebt
http://www.indexcreditcards.com/creditcarddebt
In 2007, the total household debt owed by Americans was $13.3 trillion, according to
the Federal Reserve Board. That is really an incomprehensible number: suffice it to
say, then, that the availability of credit is an important factor in the US economy,
and not surprisingly, a number of statutes have been enacted over the years to
protect consumers both before and a ...
Chapter 2- The Impact on Government Policy and Regulation.pdfMd Nazmul Hasan
The document discusses government regulation of the banking and financial services industry. It covers the reasons for regulation including protecting public savings, controlling money supply, and promoting fairness. Major laws that originated banking regulation in the US are discussed, including the National Currency Acts of 1863-1864, the Federal Reserve Act of 1913, and the Glass-Steagall Act of 1933. The Glass-Steagall Act established the FDIC, separated commercial and investment banking, and prohibited risky bank activities until it was partially repealed in 1999.
The document discusses the roots of the subprime mortgage crisis and how policies under the Clinton administration contributed greatly to the expansion of subprime mortgages. Specifically, changes to the Community Reinvestment Act in 1994 put pressure on banks to make loans to low-income borrowers through increased regulations and enforcement. This led banks to issue more subprime mortgages to maintain high CRA compliance scores. The massive growth in subprime lending from these policy changes was a key factor that helped drive the financial crisis. Clinton does not regret repealing Glass-Steagall, which further enabled risky behavior in the financial system.
The document discusses the history and repeal of the Glass-Steagall Act of 1933. It was established after the Great Depression to separate commercial and investment banking in response to risky behavior that contributed to the economic collapse. However, the act was repealed in 1999 under President Bill Clinton, allowing commercial banks to engage in investment banking activities again. Some argue this repeal contributed to the 2008 financial crisis by enabling risks like the underwriting of mortgage-backed securities. The repeal removed a key regulation that had been in place for decades to avoid another depression.
May 13, 2015 Webinar
Presented by EDR & EBA
“The Dodd-Frank Act” is all over the news. It’s reportedly killing community banks, and will impact all of the banking members in this distribution in some capacity. In continuation of a February Environmental Bankers Association - Risk Management Call (EBA-RMC) John Rybak and Greg Lampe of BB&T Bank, and attorney Brad Merrill of Snell-Wilmer, will provide an explanation of what’s going on, notably with respect to Banking Vendor Management (“vetting the vendors”).
Since its passage in 2010, implementation and interpretation of the 2,323 page long Dodd-Frank Act has touched most every part of banking including how banks use vendors, particularly in the area of mortgages and consumer compliance. Five years later there remains substantial uncertainty as new rule making continues. During our call we will provide a summary of key regulatory areas every banker should be aware of in vendor management as well as some of the general results of Dodd-Frank and exposure for non-compliance.
This document discusses operational risks faced by legal departments and provides recommendations for mitigating those risks. It defines operational risk as losses from failed internal processes or external events. It then lists US laws related to operational risk in areas like data security, financial services regulations, and consumer protection. Finally, it recommends that legal departments work with IT, understand systems and risks, implement security technologies, and monitor to reduce operational risks from issues like data breaches, outages, fines and litigation costs.
The document discusses identity theft and provides information on how employers can protect themselves and their employees. It summarizes identity theft laws like FACTA and the "Red Flag" rules, and explains that employers are responsible for protecting sensitive personal information and establishing an identity theft prevention program. It recommends designating a compliance officer, providing employee training, and having policies to securely handle and protect non-public information.
The document summarizes the bankruptcy court approval of the sale of the HOVENSA oil refinery on St. Croix to ArcLight Capital Partners. Key details include:
- The court approved the $235 million sale to ArcLight, which includes $220 million cash plus commitments to build an $6 million asphalt plant and pay $9 million into escrow.
- The deal also calls for ArcLight to spend $125 million on capital expenditures in the first two years and make annual payments to the government based on revenues. It will also create 80 full-time jobs.
- There was some controversy as the backup bidder Buckeye Partners argued their bid was higher, but when all factors were
The document discusses several women on St. Croix and their accomplishments. It profiles Dr. Lisa Adams-Mahepath, the first native Virgin Islander to practice optometry in the territory. It also discusses Orquedis Abdallah, owner of the new Bellissimo's Beauty and Spa on St. Croix, and attorney Natalie Nelson Tang How, who serves as Chief Labor Negotiator for the government of the Virgin Islands.
The document examines the high murder and unsolved murder rates in the U.S. Virgin Islands from 1999 to 2006, finding that the territory has one of the highest murder rates and one of the lowest solved murder rates in the nation. It details specific unsolved murder cases from 2006, including the killings of entertainer Blair Shannon and teenager Aheim Huyghue, to show the human impact. The report analyzes why so many murders go unsolved in the V.I. and what can be done to improve police investigations and lower the territory's alarming homicide statistics.
Rodney Miller was paid $775,000 as CEO of Schneider Regional Medical Center while cancer patients suffered due to unpaid bills. While Miller enjoyed a lavish salary and perks, the hospital fell behind on payments for chemotherapy drugs and medical equipment. This caused treatment delays and shortages, and a former administrator believes some patients died sooner as a result. Miller had previously been dishonorably discharged from the Navy for theft and fraud.
The document contains advertisements and announcements from various businesses in St. Croix, US Virgin Islands. It includes information on healthcare services, jewelry stores, restaurants, legal services, education opportunities, and more. The businesses are promoting their products, services, locations, and contact details to the local community.
This document appears to be an excerpt from a publication titled "Best of the VI on St. Thomas 2016." It consists of over 200 entries that each recognize a different local business or organization as being the "best" in some category on St. Thomas for 2016. Each entry includes a brief description or advertisement for the recognized business. The document does not provide any additional context around the publication or awards.
Virgin Islands police officers have used deadly force 100 times over the last 20 years, killing 28 people and using other forms of deadly force on 15 more. However, only 10 times have officers been prosecuted. The article examines 85 shootings by police and finds that in 65 cases (76%) the victims were unarmed. National experts are alarmed by these statistics and the lack of accountability. They believe Virgin Islands police are misusing deadly force with alarming frequency and escaping prosecution.
The article summarizes an investigation into government contracts awarded to Elite Technical Services, including:
- A $650,000 contract was awarded to Elite in 2002 for coastal zone mapping, despite Elite having no qualifications, lying about past work and staff, and violating contracting laws.
- Elite was paid $324,500 but never completed the work. The government has made no attempt to recover funds.
- Elite has received $827,980 in contracts from the VI government since 2001 but the territory has received only a fraction of the promised work.
- Questions are raised about Elite's qualifications and experience given inconsistencies in its descriptions and licenses held. Several individuals listed as partners or personnel also deny any involvement with
3. VI_DAILYNEWS/PAGES [A03] | 04/30/12 19:54 | CHESLIKSTE
LICENSE TO STEAL
The Virgin Islands Government’s lax oversight and loose laws put
Virgin Islands residents at risk of losing their life savings.
Trusting the government to have rules and regulations for financial
institutions, a number of people deposited their money into a new credit
union — but when they go to make a withdrawal, they get excuses,
evasions and lies.
What they don’t get is their money.
Her Majesty’s Credit Union, a newcomer among financial operations in
the territory, identified itself on its website as a reputable business
headquartered in Denver.
Neither claim was true.
HMCU’s home office is beside a rural Colorado airstrip in the middle of
nowhere.
It is operated by a man with a criminal record, multiple aliases and a
history of failed business ventures.
He currently is under investigation by the U.S. Securities and Exchange
Commission, and has been jailed in the past for refusing to cooperate
with state investigators in Colorado looking into possible fraud.
A two-month investigation by The Daily News has focused on the ways
the V.I. government fails to prevent the plundering of local depositors’
savings.
The newspaper’s search for information extended to three states and
ultimately produced a clear picture of how inadequately the V.I.
government serves or protects the people of the territory.
Feds take
a close look;
V.I. government
looks away
While the U.S. Securities and Exchange
Commission has been busy cracking
down on Her Majesty’s Credit Union, the V.I.
government has assuming nothing is wrong
despite its own failure to do any oversight.
Department of Licensing and Consumer
Affairs Commissioner Wayne Biggs Jr. said
there is “no indication” the credit union is steal-
ing people’s money.
The SEC — the federal agency responsible
for enforcing the federal laws regulating the
securities industry, the nation’s stock exchang-
es, and other electronic securities markets —
believes otherwise.
On Jan. 9, the SEC issued a formal order for
an investigation “In the matter of Her Majesty’s
Credit Union” and on Jan. 13, Jan. 25, Jan. 26
and March 9, the SEC served HMCU and its
operators with subpoenas for documents and
testimony.
Her Majesty’s Credit Union ignored them.
Running out of patience with HMCU’s delay
tactics, the SEC on March 22 asked a federal
judge in Denver to compel HMCU to produce
those financial records.
“It is a subpoena enforcement action,” said
Chris Friedman, an attorney in the SEC’s
Denver office.
The court filing reveals that the targets of the
SEC investigation are Stanley McDuffie (also
known as Stanley Roberson and Stanley Battle)
John Williams and Jilapuhn, doing business as
Her Majesty’s Credit Union.
The SEC states in the filing that Her
Majesty’s Credit Union is a trade name under
which Jilapuhn is conducting business in
Colorado — even though HMCU has never
been chartered as a credit union in Colorado, or
in any other state, by the National Credit Union
Administration.
The SEC has honed in on how the V.I. gov-
ernment’s licensing of HMCU is a gateway for
illegal activity elsewhere.
“Since at least 2008, HMCU has purportedly
transacted business as a credit union over the
Internet and from at least one office in the U.S.
Virgin Islands. HMCU claims to be chartered
by the U.S. Virgin Islands,” the SEC filing
says.
Court documents show that the SEC is going
after possible violations of federal anti-fraud
provisions, specifically in connection with
HMCU’s offer, purchase or sale of high-yield-
ing certificates of deposit.
“The commission staff are also investigating
whether respondents and others made mislead-
ing statements or omissions regarding HMCU by
materially misrepresenting, among other things,
the safety and return rates of the investments,
and the use of the investor proceeds,” the SEC
says in the filing.
See LICENSE, next page
License to steal
Photos provided by FULTON COUNTY, GA.,
SHERIFF’S DEPARTMENT
Stan McDuffie
Chief Executive Officer of
Jilapuhn and HMCU since 2010
Stan Roberson
Chief Executive Officer of
Jilapuhn and HMCU before
2010, Jailed for failing to
provide documents
Stanley Battle
Pleaded guilty to one one
misdemeanor count of
embezzling public
money/property
Stanley Roberson-Battle
Filed for bankruptcy in 1992;
charged with deposit account
fraud in 2006
See SEC, next page
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
Monday, April 30, 2012 The Virgin Islands Daily News 3
4. VI_DAILYNEWS/PAGES [A04] | 04/30/12 19:59 | CHESLIKSTE
HMCU has a history of offering to sell
—by advertising on Google and eBay —
credit union certificates of deposit that it
promised would earn the buyer up to 7.75
percent interest. The buyer did not even
have to be a member of the credit union,
the ads said.
The state of Colorado tried to investigate
in 2010, but Stan Roberson, the man who
created and operated Her Majesty’s Credit
Union, opted to go to jail rather than open
HMCU’s financial books.
Roberson’s legal troubles arising from
financial schemes go back to 2006 and
even earlier, to 1994. Both times were in
Georgia. Each time he used a different
identity.
In 2006, the National Credit Union
Administration, which is the federal credit
union independent oversight agency, seized
a credit union that Roberson, who also uses
the surnames Battle, McDuffie and
Roberson-Battle, had started in Georgia just
a few months earlier. NCUA immediately
shut down the credit union, which he had
named Jilapuhn, and liquidated the assets.
Roberson was arrested and charged with
deposit account fraud.
Even earlier, in 1994 while he was still a
college student, he pleaded guilty in federal
court to embezzlement. He was sentenced to
jail, given two years’ probation and was
ordered to pay the U.S. Postal Service
$4,279.97 in restitution.
Now in 2012, even in the safe haven that
Stan Battle/McDuffie/Roberson/Roberson-
Battle discovered in the Virgin Islands, he and
his credit union are under intense scrutiny —
but by the feds, not by the V.I. government.
For two years, V.I. government officials have known they
are not doing a good enough job regulating HMCU credit
union — yet they have done little to change that.
Now the credit union’s St. Thomas office is dark, the door
is locked and the credit union members have no access to
their money.
Her Majesty’s Credit Union is a subsidiary of a company
called Jilapuhn, which in 2005 registered as a corporation in
the V.I. Lt. Governor’s Office Division of Corporations and
Trademarks.
That corporation is not in good standing.
Jilapuhn filed a certificate of trade name for Her Majesty’s
Credit Union in 2007 but did not file articles of incorporation
papers for HMCU until Sept. 28, 2010.
The V.I. Lt. Governor’s Office found the filing to be defi-
cient and did not approve the corporation.
Lies and loopholes
The V.I. Code puts the Department of Licensing and
Consumer Affairs in charge of regulating credit unions’ activ-
ity in the territory — yet the DLCA has no rules governing
credit unions.
In contrast, V.I. law puts the Lt. Governor’s Office
Division of Banking and Insurance in charge of regulating all
banks and other financial institutions in the territory. The
division has extensive rules and enforcement apparatus.
The credit union loophole originated In 1969, when the 8th
V.I. Legislature added a new chapter to the V.I. Code to gov-
ern incorporation, regulation, management and control of co-
operative corporations, which are ones owned and run by
their members.
In 1971, the V.I. Legislature amended the law to make the
director of the Consumer Services Administration — which
later became the DLCA — responsible for regulating co-
operatives and, specifically, credit unions. The amendment
gave the director the authority to create rules and regulations
for that purpose.
Now, 41 years later, the government has no credit union
rules and regulations and has never drafted any.
Hiding behind Jesus
Jilapuhn stands for “Jesus is Lord all praise unto his
name,” and its use as a business name by a financial institu-
tion could inspire confidence among religious customers.
Jilapuhn’s website spells out the name and quotes scripture.
Jilapuhn filed for a business license with DLCA in 2005
and in 2008 received a DLCA license to operate a credit
union in the territory. Under the name Her Majesty’s Credit
Union, it opened in a storefront inside the Tutu Park Mall on
St. Thomas.
Since then, HMCU has made numerous false claims in
order to appear legitimate.
At first, the credit union claimed that it was insured by
Lloyd’s of London.
It was not.
HMCU plastered its bank statements and website with the
America’s Credit Unions logo, implying it was a member of
the Credit Union National Association.
It was not.
HMCU advertised on its website that it was regulated by
the V.I. Department of Licensing and Consumer Affairs.
DLCA does nothing to regulate the credit union.
In the meantime, people were trusting their money to a con
man who was operating without scrutiny in the Virgin
Islands.
One man, many names
Stan McDuffie is the Chief Executive Officer of Jilapuhn
and HMCU. He replaced Stan Roberson, who was jailed in
2010 for failing to comply with a federal investigation into
the credit union.
They are the same person.
He also goes by the names Stanley Roberson-Battle and
Stanley Battle.
He changes his name every time he gets into trouble.
Stanley Bernard Battle was born March 7, 1966, in
Washington, D.C. He graduated from M.D. Collins High
School in College Park, Ga., in 1984.
In July 1992, he filed for bankruptcy in Montgomery, Ala,.
under the name Stanley Bernard Roberson-Battle.
In 1994, under the name Stanley B. Battle, he pleaded
guilty in federal court in Atlanta to one misdemeanor count
of embezzling.
He was sentenced to two years probation, a $500 fine and
ordered to pay $4,279.97 in restitution to the U.S. Postal
Service.
Also in 1994, under the name Stan Roberson-Battle, he
received a bachelor’s degree in political science from Auburn
University at Montgomery, Ala.; in 1995, he received a mas-
ter’s degree in human resource management from Troy State
University in Montgomery.
Who and what
is Jilapuhn?
Corporate information about Jilapuhn and its
subsidiaries is murky.
Many of the same people — most of them part
of the same family — have positions in every
company.
The website for Her Majesty’s Credit Union
does not list the board of directors.
Its parent company, Jilapuhn, does not list a
board of directors on its website, but one of its
subsidiaries, Stateside Communications, filed an
application with the Idaho Public Utilities
Commission in April 2010 and listed the Jilapuhn
executives and the board of directors as:
Officers
CEO — Stan Roberson
CFO — Cresandra Battle
President — Valerie Wilson
Comptroller — John Wesley Williams
Board of Directors
Robert McDuffie, Washington, D.C., chairman
Barry Butler, Columbus, S.C.
Patrick Masicot, St. Thomas, V.I.
Yolanda Watt, Richton Park, Ill.
The Daily News found that Stan Roberson,
Cresandra Battle, Valerie Wilson, John Wesley
Williams and Yolanda Watts all are related.
Cresandra Battle is John Wesley Williams’
mother.
John Wesley Williams is Yolanda Watts’brother.
Valerie Wilson is related to Stanley Bernard
Roberson, who is related to Cresandra Battle.
On the Jilapuhn articles of incorporation filed
with the V.I. Lt. Governor’s Office Division of
Corporations and Trademarks, the three incorpo-
rators are Stan Roberson, Cresandra Battle and
Valerie Wilson.
The business license issued by DLCA to
Jilapuhn doing business as Her Majesty’s Credit
Union also lists Stan Roberson, Cresandra Battle
and Valerie Wilson.
The Daily found that the information Jilapuhn
submitted to Idaho had many errors, including:
Patrick Massicot’s name is misspelled as
Masicot.
Barry Butler’s address is given as Columbus,
S.C., which is a town that does not exist.
Yolanda Watts’ name is misspelled as Watt.
LICENSE TO STEAL
See LICENSE, next page
SEC
CONTINUED FROM PAGE 3
HMCU’s target is people from Caribbean islands, as indicated by its slogan: “Dem
people, dem credit union.” It seeks to appeal to people who have confidence in British
connections. Its full name is Her Majesty’s Credit Union, although it has no connection
to the queen of England — and it falsely claims to have Lloyd’s of London insurance. It
seeks to inspire trust by spelling out on its website and literature the name its parent
company has chosen, Jilapuhn: “Jesus is Lord all praises unto his name.”
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
LICENSE
CONTINUED FROM PAGE 3
4 The Virgin Islands Daily News Monday, April 30, 2012
5. VI_DAILYNEWS/PAGES [A05] | 04/30/12 20:00 | CHESLIKSTE
Terms to knowCredit Union: A credit union is a nonprofit
financial institution that is governed by
its members. It can be state chartered
or federally chartered and must provide
its members with share insurance. The
difference between credit unions and banks
is that credit unions have shares, whereas
banks have deposits. Banks are for-profit
companies, while credit unions are not-for-
profit companies. Whereas banks charge
interest on loans, collect fees and penalties
and reinvest all that to make more money,
credit unions are owned by their members
(account holders), and any profit made is
paid back to members or reinvested into their
organization. Credit unions have a defined
membership, such as an employee group. The
members elect the officers, and the officers
are accountable to the members.
CUNA: The Credit Union National Association,
a trade association for credit unions.
Federal credit union: A credit union chartered,
insured and regulated by the federal
government.
FDIC: Federal Deposit Insurance Corporation,
established in 1933 to give bank depositors
confidence their money was safe. FDIC
insures bank customers’ deposits up to
$250,000 per individual per bank.
HMCU: Her Majesty’s Credit Union, an
unregulated, uninsured, unincorporated
business that claims to be a genuine credit
union but does not follow standard credit
union standards and practices.
Jilapuhn: Stands for “Jesus is Lord all praises
unto his name.” It is doing business in the
Virgin Islands as Her Majesty’s Credit Union.
NCUA: The National Credit Union
Administration. The NCUA is the
independent federal agency that charters
and supervises federal credit unions. NCUA
operates the National Credit Union Share
Insurance Fund, which insures the savings
of federal credit union members. It is not
to be confused with Credit Union National
Association, CUNA, the trade confederation
of thousands of individual credit unions.
Securities: Financial instruments such as
stocks, bonds and certificates of deposit.
They cannot be sold legally unless they are
registered with the Securities and Exchange
Commission. To sell or attempt to sell a
security before it is registered is a felony.
SEC: Securities and Exchange Commission. It
is the agency responsible for enforcing the
federal laws regulating the securities industry,
the nation’s stock exchanges and electronic
securities markets.
Unregistered securities: Stocks, bonds,
certificates of deposit and other financial
investment instruments that are not registered
with the Securities and Exchange Commission.
To sell or attempt to sell a financial security
before it is registered is a felony.
State-chartered credit union: A credit union that
is regulated by the state in which it is located
and is subject to the laws of that state. Some
state-chartered credit unions are privately
insured, some are federally insured.
LICENSE TO STEAL
Daily News Photo by AISHA-ZAKIYA BOYD
Her Majesty’s Credit Union’s office in Tutu Park Mall is now closed.
Despite his prior embezzlement conviction and bankruptcy, in
1997 he applied for a job with BellSouth Telecommunications in
Atlanta and claims to have worked there until 2000.
He did something else in 1997. He created what would
become his most ambitious venture: Jilapuhn.
Credit union failure No. 1
Using the name Stan Roberson, in 2005 he opened Jilapuhn
Federal Credit Union in East Point, Ga. As a federal credit
union, it was backed by the full faith and credit of the federal
government, and therefore it was regulated by the National
Credit Union Administration.
The NCUA is the independent agency that charters and super-
vises federal credit unions. NCUA operates the National Credit
Union Share Insurance Fund, which insures the savings of fed-
eral credit union members.
Jilapuhn Federal Credit Union was in operation less than a year
before the NCUA seized control and liquidated it, and on Aug. 12,
2006, Stan Roberson-Battle was arrested by the East Point Police
Department and charged with deposit account fraud.
According to the Fulton County Sheriff’s Department, he listed
his occupation as “computer tech,” and he said he was a resident
of Hampton, Ga. After serving three days, he was released from
the Fulton County Jail on Aug. 15, 2006, on a $250 cash bond.
The Fulton County Superior Court said it could not provide infor-
mation about the disposition of the case in time for this report.
“NCUA assumed control of Jilapuhn FCU’s operations on
August 26, 2005, after determining the credit union had an
impaired capital position and was experiencing irresolvable
problems in the areas of capital adequacy, cash management,
record keeping and management,” the NCUA announced in a
2005 news release.
According to the NCUA, Jilapuhn Federal Credit Union had
less than 200 members and assets of less than $150,000.
Because that credit union in Georgia was insured by the fed-
eral government — up to $100,000 per account — depositors
were able to recover their funds after the shutdown.
Virgin Islands depositors have not been so lucky.
Her Majesty’s Credit Union
The failure of Jilapuhn Federal Credit Union in Georgia did
not stop Stan Roberson from trying again. He set his sights on
the Virgin Islands, where he discovered that a lax government
would allow him to take people’s money without any oversight.
In 2005, he applied for a V.I. business license, but he said it
was for a communications company, not a credit union. That
application was for Jilapuhn Inc., doing business as Jita
Communications. Yet instead of a license for that company, he
received a license for Jilapuhn, doing business as Her Majesty’s
Credit Union. That business license was issued in 2008, DLCA
Director of Licensing Knolah Nicholls-Thomas said.
The Daily News requested a copy of the complete business
license file and application — which under V.I. Law is public
information — but DLCA was slow to respond and would not
disclose everything in the file.
DLCA attorney Fredrick Norford said some documents were
being withheld because, he claimed, the entity is under investi-
gation by the Virgin Islands Inspector General’s Office.
V.I. Inspector General Steven van Beverhoudt, said he would
not comment on that claim.
The documents that DLCAdid provide show Stan Roberson has
been allowed to renew his business license every year since 2008.
His current business license does not expire untilAug. 31, 2012.
Police did not look
Roberson’s application process at the DLCA required the V.I.
Police Department to conduct a criminal background check on
him. In November 2005, the department did the check. The
name they looked for was Stanley B. Roberson, and they found
no criminal record for him.
They never took his fingerprints. They never looked outside
the Virgin Islands.
The only thing the V.I. Police Department did was search its
own files, and because Roberson had not been operating in the
territory at that point, they found nothing.
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
LICENSE
CONTINUED FROM PAGE 4
See LICENSE, next page
Monday, April 30, 2012 The Virgin Islands Daily News 5
6. VI_DAILYNEWS/PAGES [A06] | 04/30/12 19:11 | CHESLIKSTE
Athorough background check, of the type that would be appropri-
ate for someone running a financial institution, would have included
a national search using NCIC, the National Crime Information
Center.
The Police Department’s inadequate investigation and lack of ini-
tiative spotlights yet another V.I. government loophole that allows
criminals to find shelter in the territory.
The DLCAfile on Roberson and Jilapuhn shows no further crimi-
nal background checks after 2005. If the DLCAhad conducted addi-
tional, and more thorough, background checks on Stan Roberson,
the agency would have found reason to deny him a license to oper-
ate an uninsured credit union.
Trouble in Colorado
In 2004, a year before setting his sights on
the Virgin islands, Roberson had registered
Jilapuhn as a corporation in Colorado. Under
that umbrella name, he also registered Stateside
Communications, Tradewinds Financial and
Her Majesty’s Credit Union.
In 2010, Her Majesty’s Credit Union caught
the eye of Colorado State Securities
Commissioner Fred Joseph, who told The
Daily News that he saw some ads on Google
promising 7.75 percent returns on certificates
of deposit. Because 7.75 percent is an unusual-
ly high interest rate on a CD, Joseph suspected it was a scam.
He also suspected that Her Majesty’s Credit Union was selling
unregistered securities — an illegal practice under federal law, pun-
ishable as a felony.
“The accounts they had were not federally insured, so what they
were issuing seemed to be promissory notes, and they’re not regis-
tered securities,” Joseph said.
Joseph noticed, too, that while the credit union was operating in
the Virgin Islands, its “processing center” was located in Colorado.
Joseph subpoenaed a long list of documents and information from
Stan Roberson.
Roberson refused to comply.
And suddenly Roberson was gone and Her Majesty’s Credit
Union had a new CEO: John Wesley Williams.
Williams took a defiant stance. In a letter to his attorney, Steve
Feder, dated Oct. 12, 2010, Williams sought to use the Virgin Islands
business license as a weapon to try to block Colorado’s probe and to
claim that Colorado had no regulatory jurisdiction over Her
Majesty’s Credit Union.
Williams said that based on a May 2010 memorandum of under-
standing between the Virgin Islands DLCAand the Lt. Governor’s
Office, HMCU must follow all rules and regulations of the National
Credit UnionAdministration. “The NCUAdoes not permit corpora-
tions to own or be a holding company for any credit union whether
state or federally regulated,” Williams wrote.
The thrust of his argument was that the Jilapuhn corporation reg-
istered in Colorado could not legally own Her Majesty’s Credit
Union in the Virgin Islands.
“This institution will not provide any documents to any state
court, state government, representative of such nor any official of
Jilapuhn Inc. as these parties do not have proper authorization to
view such documents,” he wrote.
“Please understand that Mr. Roberson and Jilapuhn, Inc. do not
represent the interest of HMCU in any capacity and are not autho-
rized by this institution to do so,” Williams wrote.
Williams pressed his argument further by asserting that no
employees of HMCU were located in Denver. However, Williams
himself, the HMCU chief executive officer, was living in Denver
at that time and has lived there for at least the last three years.
The Daily News searched public records for any addresses for
Williams outside Colorado and found none.
AColorado judge did not agree with Williams’position on juris-
diction and found Stan Roberson in contempt of court for failing to
produce the credit union documents the statehad subpoenaed.
Roberson still would not turn over the documents, and on Dec.
9, 2010, a state judge sentenced him to six months in the Denver
County Jail.
The National Credit UnionAssociation then issued a “notice of
prohibition” barring Stan Roberson from any future involvement in
a federally regulated or insured credit union.
Roberson then made a deal. He told the judge that he would pro-
vide the documents the investigators sought, and he got out of jail
after a month of his sentence.
He did not fulfill his side of the deal.
Roberson produced some — but not all — of the documents he
promised, Joseph said.
Roberson then shifted to a different deception, leading Joseph to
think that the trouble was over.
“He closed the operation here in Colorado,” Joseph said.
That did not turn out to be accurate.
He simply moved Jilapuhn’s corporate offices — out of sight to a
small airstrip in the middle of nowhere.
And Stan Roberson turned into Stan McDuffie.
LICENSE TO STEAL
What happened when?
July 1992: Stanley Bernard Roberson-Battle files
for personal bankruptcy in Montgomery, Ala.
April 1994: Stanley B. Battle pleads guilty in
federal court in Atlanta to one misdemeanor
count of embezzling. He is sentenced to two
years’ probation, a $500 fine and ordered to pay
$4,279.97 in restitution.
December 1997: Jilapuhn Inc. is registered as a
corporation with the Georgia Secretary of State.
February 2004: Jilapuhn is registered as a
corporation with the Colorado Secretary of State.
January 2005: Jilapuhn Federal Credit Union
opens in East Point, Ga.
March 2005: Jilapuhn files articles of
incorporation with the V.I. Lt. Governor’s Office.
August 2005: The National Credit Union
Administration shuts down Jilapuhn Federal
Credit Union.
September 2005: Jilapuhn is issued a certificate
of incorporation by the V.I. Lt. Governor’s Office
for the purpose of banking and communications.
November 2005: Jilapuhn doing business as Jita
Communications applies for a business license
from the V.I. Department of Licensing and
Consumer Affairs.
August 2006: Stanley B. Roberson-Battle is
arrested in East Point, Ga., and charged with
deposit account fraud.
October 2007: Jilapuhn files and receives a
certificate of trade name for Her Majesty’s Credit
Union from the Lt. Governor’s Office.
August 2008: Jilapuhn doing business as
Her Majesty’s Credit Union is licensed by V.I.
Department of Licensing and Consumer Affairs
for credit union services.
May 2010: The Lt. Governor’s Office Division of
Banking and Insurance signs a memorandum
of understanding with the V.I. Department of
Licensing and Consumer Affairs about methods
to regulate credit unions in the territory.
September 2010: Her Majesty’s Credit Union
files articles of incorporation with the Lt.
Governor’s Office, which finds the articles
deficient, and does not accept them.
December 2010: Stan Roberson is found
guilty of contempt of court for failing to
produce documents to the Colorado Securities
Commission and sentenced to 180 days in jail.
June 2011: The National Credit Union
Administration board issues an order prohibiting
Stan Roberson from being involved in any
federally insured credit union.
January 2012: The U.S. Securities and
Exchange Commission issues a formal order for
an investigation “In the matter of Her Majesty’s
Credit Union.”
March 2012: Tutu Park Limited files a lawsuit
against Her Majesty’s Credit Union in V.I.
Superior Court for breach of contract. The credit
union has not paid rent since December 2010
and owes $37,595.71 in back rent and fees.
March 2012: The U.S. Securities and Exchange
Commission asks a federal judge to enforce
the subpoenas previously issued for documents
from Jilapuhn and Her Majesty’s Credit Union.
May 6, 2012: The MOU between the
Lt. Governor’s Office and DLCA expires.
Fred Joseph
Daily News Photo by SEAN McCOY
Until a Daily News photographer visited Her Majesty’s Credit Union’s office in Colorado, the company’s website claimed its corporate
offices were in busy commercial complex in Denver. In reality, it turned out to be in a tiny office in a building by a rural airstrip.
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
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A sign in the window
Kendra Prosper opened a savings account at HMCU in the
Tutu Park Mall on Feb. 26, 2011. Prosper came to St. Thomas
from Dominica 10 years ago. She has a green card, and until
last month, her income came from cleaning houses. Now she
provides in-home care to an elderly man.
Prosper said a friend told her about Her Majesty’s Credit
Union, so she went to the mall to check it out. She said she was
looking for a place to open a savings account, and she liked that
HMCU did not offerATM cards so she would not be tempted to
spend her savings.
“At first it was OK,” she said, but then HMCU began provid-
ing excuses instead of money.
In a March 30 interview, she said: “When I went three weeks
ago to get some money, the lady said ‘the system is down.’“And
every time, I keep on going, ‘the system is still down.’”
Prosper said the branch had two employees at first, but in
January, branch manager Gwenneth Clarke told Prosper she had
to fire the other teller.
When “the system went down” and stayed down, Prosper
said, Clarke began to use carbon copy deposit slips instead of the
official looking printed statements the credit union previously
issued for each transaction.
Prosper said Clarke accepted money from credit union
members but would not let members withdraw from their
accounts.
Clarke has refused to talk with The Daily News about HMCU.
Then one day in February, Prosper and other HMCU
members showed up and found the door to HMCU was
locked and the lights were off.
Asign taped to the office window gave instructions that raised
suspicions.
“Please note. This branch is temporarily closed due to the ill-
ness of the Branch Employee. For all transactions please call
1-888-920-0824 or go online and utilize online banking for
transactions requests at www.hmcu.net. Please check account
statements for further updates. We apologize for the inconve-
nience. Signed, CEO Stan McDuffie.”
Prosper, who needed to withdraw some of her money, did
what the sign said, only to discover it led nowhere.
“The number they had on the door, it wasn’t working at all,”
Prosper said.
All it did was provide a taped welcome message and sales
pitches for HMCU.
She went to the website and eventually tracked down a
Colorado phone number for Jilapuhn.After leaving a number of
messages for the CEO, who was going by the name Stan
McDuffie, she finally got him on the phone.
“He said if I have money to save, I could send it to the Denver,
Colorado branch,” Prosper said.
However, there is no Colorado branch for HMCU.
Prosper said Stan McDuffie also sought to reassure her by
saying that HMCU would be opening a new branch on St.
Thomas on May 1. At first, he said it would be on Norre
Gade. Then he said it would be in Palm Passage, she said.
Prosper was fed up, so she asked McDuffie to send her the
balance in her account, which was about $565, and then close
the account.
He told her he would send her a check, she said.
She asked him instead to wire her the money through Western
Union or MoneyGram, but he told her he did not have an
account with those businesses.
In addition to dodging her demand for her money, McDuffie
— who actually is Stan Roberson — would not relinquish his
hold on it.
“He told me he’s not closing out my account so when they
open the new branch, I ‘could go ahead,’” and continue doing
business with HMCU, Prosper said.
Now, a month later, there are no indications that HMCU is
opening a new branch anywhere on St. Thomas — and
Prosper still has not received her money and wonders wheth-
er she ever will.
“This man,” Prosper said, slowly, shaking her head in doubt.
“I don’t know. I don’t know.”
Another depositor, Elizabeth George, a newcomer to St.
Thomas from Dominica, also told The Daily News that she fears
she never will see her savings again.
George opened her account at Her Majesty’s Credit Union in
January. She was told the “system is down,” but she was not yet
suspicious. She made two deposits, one on Jan. 12, 2012, for
$210 and one on Feb. 3, 2012, for $400.
When a friend told her the credit union had closed down, she
went to the HMCU office at the mall to take her savings out.
Like Prosper, George was determined to get her money.
She, too, called Stan McDuffie in Colorado, and she heard a
story similar to the one he told Prosper.
George said McDuffie assured her that HMCU was still
in business and was preparing to open a new branch
downtown.
LICENSE TO STEAL
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
At first, Her Majesty’s Credit Union deposit slips were computerized, bottom sample, but by January HMCU’s only employee
claimed the computers were down and switched to using carbon copies, top sample.The Daily News has redacted parts of these
deposit slips to protect the account holder’s identity.
LICENSE
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Monday, April 30, 2012 The Virgin Islands Daily News 7
8. VI_DAILYNEWS/PAGES [A08] | 04/30/12 19:13 | CHESLIKSTE
LICENSE TO STEAL
She said he promised to send her a check for the
balance in her account.
The check has not arrived, and George is desperate.
“I need my money,” George said. “I’m less than a
year here. I don’t have a steady job.”
She said she chose Her Majesty’s Credit Union as
the place to open a savings account because she heard
that banks require a minimum balance or a minimum
amount to open the account. She said the credit
unions in her native Dominica always seemed to be
good, so she thought she could trust Her Majesty’s
Credit Union.
After she opened her account, she told her sister
about it. “She asked me, ‘you think the credit union
safe?’ I said, ‘I think so,’” George said.
“I hope we can get our money back.”
HMCU’s explanation
Stan McDuffie told The Daily News on March 23
that a new HMCU branch would open in a few
weeks.
“The branch is temporarily closed because we only
had one employee there,” he said. “We will be open-
ing up May 1.”
He said the employee’s departure was sudden and
no one had a chance to tell the credit union’s mem-
bers what was going on.
“It hit us by surprise as well,” Stan McDuffie said,
then he added: “That’s really all I can say right now, I
don’t want to get into talking and say something I
shouldn’t.”
What he did not disclose to the credit union deposi-
tors or The Daily News was that HMCU’s landlord,
Tutu Park Ltd., had taken legal action against HMCU.
On March 13, Tutu Park filed a civil lawsuit in V.I.
Superior Court against Jilapuhn Inc. seeking action
for breach of contract and debt.
Tutu Park states in the suit that HMCU is “substan-
tially delinquent” in its lease obligations and as of
Jan. 1, 2012, owed $37,595.71, not including fees and
interest.
According to a statement dated Jan. 4, the last rent
payment the credit union made was in December
2010 for $966.33.
The case has been assigned to V.I. Superior Court
Judge Michael Dunston.
To date, the court has received no reply from
defendant HMCU.
At the airport
On March 22, a Daily News reporter visited the
two Colorado locations that HMCU listed on its
website. The first one, at 12015 East 46th Ave.
Daily News Photo by SEAN McCOY
The corporate headquarters for Jilapuhn, Her Majesty’s Credit Union’s parent company, in Colorado.
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
LICENSE
CONTINUED FROM PAGE 7
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8 The Virgin Islands Daily News Monday, April 30, 2012
9. VI_DAILYNEWS/PAGES [A09] | 04/30/12 19:14 | CHESLIKSTE
LICENSE TO STEAL
Today,April 30
Carnival Victory (2,758) 7 a.m. to 5 p.m. Havensight
Summit (1,950) 8 a.m. to 5 p.m. Havensight
Tuesday, May 1
Carnival Liberty (2,974) 10 a.m. to 6 p.m. Havensight
Wednesday, May 2
Constellation (1,950) 8 a.m. to 5 p.m. Havensight
Allure of the Seas (5,400) 9 a.m. to 5 p.m. Crown Bay
Thursday, May 3
Carnival Valor (2,974) 7 a.m. to 5 p.m. Havensight
Friday-Sunday, May 4-6
No ships
Monday, May 7
Carnival Victory (2,758) 7 a.m. to 5 p.m. Havensight
Tuesday, May 8
Carnival Dream (3,646) 10 a.m. to 8 p.m. Havensight
Oasis of the Seas (5,400) 9 a.m. to 6 p.m. Crown Bay
Daily News Photo by SEAN McCOY
The rural Colorado road leading to the corporate headquarters of Jilapuhn Inc., the parent company of Her Majesty’s
Credit Union.
in Denver, is an office complex occupied by a
number of businesses — none of which are Her
Majesty’s Credit Union or Jilapuhn.
Those names are not on the building’s directory.
When reached by phone, Stan McDuffie told
The Daily News that the Denver location had been
closed and the corporate offices were now “consol-
idated” into a single office.
The Daily News reporter located the new office,
but it is not at a metropolitan center. Open fields
surround a small building alongside a lonely,
windswept airstrip optimistically named Front
Range Regional Airport.
A truck stop near an Interstate 70 exit, about
three miles from the airport, is one of the few busi-
nesses nearby.
At the airport, the only trace of HMCU was the
name Jilapuhn on a sign at 37397 Cessna Way.
The door was locked, but parked in front of the
building was a Jeep with specialty Alpha Phi Alpha
fraternity Virgin Islands license plates and an
Auburn University wheel cover on the spare tire.
A man who identified himself as “Mr.
McDuffie” responded to a knock on the door. His
face matches the police mug shot of Stan
Roberson-Battle taken after his Georgia arrest in
2006.
McDuffie said he lived in Colorado full-time. He
declined to answer questions about Her Majesty’s
Credit Union. He said the company would issue a
press release the next day.
It did not.
McDuffie later said that on April 6 he would
hold a videotaped conversation in his attorney’s
office in Golden, Colo., in which he promised he
would discuss litigation that the credit union would
have filed in federal court by then.
“A lot of what I have is going to implicate a lot of
people,” he said. “There is more going on with us
than most of our members understand.”
April 6 has come and gone, and to date, the prom-
ised litigation has not materialized. No lawsuits
have been filed by Jilapuhn, Her Majesty’s Credit
Union or Stan McDuffie.
— Sean McCoy contributed to this report.
Contact reporter Aldeth Lewin at 340-714-9111 or
email alewin@dailynews.vi.
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
LICENSE
CONTINUED FROM PAGE 8
Monday, April 30, 2012 The Virgin Islands Daily News 9
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LICENSE TO STEAL
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Powerball (April 29) Next draw: Wednesday
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Caribbean Lottery
Starting and operating a credit union in the V.I.
Her Majesty’s Credit Union does
not operate like other credit
unions.
It does not have insurance.
It does not operate under any gov-
ernment regulations.
It does not have a member-elected
board of directors.
It does not have regular member-
ship meetings.
It does not release financial records
to investigators or regulators at the
federal, state and territorial levels.
Yet for almost three years, HMCU
has been taking money from Virgin
Islands residents, with the blessing
of the V.I. government.
An independent federal agency
that charters and supervises federal
credit unions, the National Credit
Union Administration operates the
National Credit Union Share
Insurance Fund, which insures the
savings of federal credit union mem-
bers. The National Credit Union
Share Insurance Fund for credit
unions is the equivalent of the
Federal Deposit Insurance
Corporation for banks. FDIC does
not insure credit unions.
The difference between credit
unions and banks is that credit
unions have shares, whereas banks
have deposits.
NCUA Public Affairs Specialist
John Zimmerman said credit unions
originated with employee groups as
a way to provide financial services
that they might not have been able to
get from a bank.
Credit union membership can be
set by geography, career group, or
association.
Credit unions do not have any
stock, so any profit they make gets
reinvested into the credit union.
“That results in higher rates on
savings and lower rates on loans,”
Zimmerman said.
Because credit unions are nonprof-
its, they are tax exempt. The tax sav-
ing goes to the credit union members.
Credit unions generally are very
well-capitalized, Zimmerman said.
At the end of last year, 7,094 cred-
it unions were operating in the
United States. Of those, 4,447 are
federally chartered and 2,647 are
state chartered.
Each credit union is governed by a
volunteer board of directors, elected
by the credit union’s members and
accountable for the institution. Board
members decide on fees, interest
rates and services the credit union
will provide.
“Credit unions are nonprofits, and
they really spend a lot of time and
energy trying to figure out what’s in
the best interest of their members,”
Zimmerman said.
Five of the six credit unions in the
Virgin Islands comply with the
Federal Credit Union Act.
Her Majesty’s Credit Union does
not.
Each state has a credit union law,
“which usually is fairly similar to the
federal act,” Zimmerman said.
The Virgin Islands does not.
In some states, credit unions are
state chartered and regulated by the
state. “But in the majority of states
— by statute, by state law — the
credit union has to be insured by the
federal government,” Zimmerman
said.
In contrast, the Virgin Islands does
not have comprehensive legislation
governing credit unions. It simply
directs the Department of Licensing
and Consumer Affairs to draft rules
and regulations for credit unions.
That law was passed in 1971, but to
date, no rules and regulations exist.
In the states — unlike in the Virgin
Islands — credit unions are not
allowed to operate without insurance.
Lori Solberg, vice-president of
sales and marketing at American
Share Insurance, said that if a credit
union in the states is not insured by
the National Credit Union
Association, then it must be insured
by American Share Insurance.
“They can’t be in business. They
have to be insured by one or the
other. Without insurance, they can-
not operate,” Solberg said.
American Share Insurance is a
nonprofit, owned by its credit union
members. “We are an insurer only.
We are not a regulator,” Solberg said.
American Share Insurance cannot
insure a credit union in the Virgin
Islands because American Share is
not authorized to operate outside the
United States mainland.
When Her Majesty’s Credit Union
Other credit unions
in the Virgin Islands
• Christiansted Federal Credit Union
• Frederiksted Federal Credit Union
• Mid-Island Federal Credit Union
• St. Thomas Federal Credit Union
• Vitelco Credit Union
All five of these credit unions are legitimate. They are regulated
and insured by the National Credit Union Administration. All are
nonprofit corporations registered with the V.I. Lt. Governor’s
Office. HMCU is not.
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
See STARTING, next page
10 The Virgin Islands Daily News Monday, April 30, 2012
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LICENSE TO STEAL
first opened its doors to the public, it
claimed it was privately insured by
Lloyd’s of London. In a sales letter to
what it termed “future members,”
HMCU stated: “Your funds are insured
up to $100,000 per account through
Lloyd’s of London.” A similar state-
ment was on the HMCU website.
In a January 2009 letter from Brit
Syndicates – written on behalf of the
underwriters at Lloyd’s of London —
Jilapuhn was told to stop using the
Lloyd’s name.
“First, the use of the Lloyd’s name
is unauthorized and at no time has
anyone at Lloyd’s provided authoriza-
tion for such use.”
In the letter, Lloyd’s pointed out
that a bankers’blanket bond, which it
initially provided to Jilapuhn, never
was intended to provide protection to
credit union depositors. A bankers’
blanket bond protects only the finan-
cial institution itself, not the individu-
al depositors, against loss caused by
criminal acts of bank employees.
Lloyd’s canceled that policy on
Sept. 2, 2008, because Jilapuhn failed
to make its payments.
In November 2009, Lloyd’s once
again ordered Jilapuhn to cease and
desist using the Lloyd’s of London
name and advertising that Lloyd’s is
the insurer for HMCU’s members.
HMCU has ignored that order.
HMCU gave a new depositor an infor-
mation form in January 2011 — two
years after the cease-and-desist order
— citing its connection to Lloyd’s
insurance with this message:
“This institution is privately
insured through Lloyd’s of London,
which allows us to insure each of
your accounts up to $100,000.”
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
STARTING
CONTINUED FROM PAGE 10
Starting a credit union in accord
with NCUA standards and procedures
is not easy.
A new credit union needs spon-
sors, members and people with
financial wherewithal willing to put
money into the credit union for a
significant period of time,
Zimmerman said.
A board of directors must be
assembled, and a professional or vol-
unteer staff must be put in place.
“It’s serious business because it’s
backed by the full faith and credit of
the government,” Zimmerman said.
If any officials or senior execu-
tive officers have a criminal record
that shows up on a background
check, they must resign,
Zimmerman said.
“You have to find people, but you
have to find people in good stand-
ing,” he said.
The steps to becoming a federally
chartered credit union are intense,
requiring mountains of paperwork
and financial documents and incredi-
bly high levels of scrutiny.
“It’s a substantial amount of work
to start a credit union or any financial
institution,” Zimmerman said.
In the Virgin Islands, however, it’s
barely any work at all.
The only thing the V.I. govern-
ment required for HMCU to start up
was a three-page business license
application. Her Majesty’s Credit
Union filled it out, opened its doors
and was free to start taking in peo-
ple’s money.
— Contact reporterAldethLewin at
714-9111 oremailalewin@dailynews.vi.
A letter from Lloyd’s of London to Jilapuhn demanding Her Majesty’s Credit
Union stop claiming it is insured by Lloyd’s.
Monday, April 30, 2012 The Virgin Islands Daily News 11
12. VI_DAILYNEWS/PAGES [A12] | 04/29/12 21:39 | SUPERIMP
LICENSE TO STEAL
The website for Her Majesty’s Credit Union —
www.hmcu.net — says a lot without saying
much.
It falsely implies a Caribbean affiliation by dis-
playing as its slogan: “Dem People, Dem Credit
Union.”
The website carries this statement:
“As a credit union in the Caribbean our goal is to
bring back the TRUE meaning of credit union. This
concept has been lost by so many credit unions today.
At HMCU, we are a true Caribbean credit union with
the values of the Caribbean people. We are not only a
credit union, but a Caribbean Family Union!”
What it does not reveal is the fact that members’
money is left unprotected.
Shares in the HMCU are not insured, but the web-
site suggests otherwise by prominently displaying the
Federal Deposit Insurance Corporation emblem on
the home page and quoting an FDIC alert that
HMCU picked up elsewhere and uses on its own
website:
“HMCU is issuing a fraud alert to members and
potential members. HMCU does not broker account
openings with any company or individuals. PLEASE
BE AWARE OF ADVANCED FEE LOAN
SCAMS!”
The website also bears the America’s Credit
Unions logo, which is available for use only by mem-
bers of the Credit Union National Association.
Her Majesty’s Credit Union is not a member.
The HMCU website “About Us” page touts the
credit union’s claim to integrity with this statement:
“Trust, openness, honesty, accountability and the
highest ethical standards are important parts of Her
Majesty’s Credit Union work ethic, supporting our
trademarks of integrity and trust.”
Her Majesty’s Credit Union invokes the name of
Jesus and quotes scripture, a tactic that might inspire
trust where none should be given.
The website states that HMCU’s corporate name,
Jilapuhn, stands for Jesus is Lord all praises unto his
name. The website then displays the following:
“No weapon that is formed against thee shall pros-
per; and every tongue that shall rise against thee in
judgment thou shalt condemn. This is the heritage of
the servants of the LORD, and their righteousness is
of me, saith the LORD. — Isaiah 54:17.”
— ContactreporterAldethLewinat 714-9111 or email
alewin@dailynews.vi.
Many false claims on HMCU website
A SPECIAL INVESTIGATIVE REPORT BY DAILY NEWS REPORTER ALDETH LEWIN
12 The Virgin Islands Daily News Monday, April 30, 2012
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VIRGIN ISLANDS
Education Department says buses will run today
By FIONA STOKES
Daily News Staff
ST. CROIX — School buses are
expected to be back in service on St.
Croix today, but officials warned that
there is a possibility service could be
disrupted again.
School bus service was suspended
on the island on Monday because the
V.I. Education Department owed the
bus company, Abramson Enterprises
Inc., more than $625,000.
Education officials released a
statement announcing the suspension
Monday but at that time did not know
how long the service disruption
would last.
On Tuesday afternoon, Education
spokeswoman Ananta Pancham said
that Education Department officials
examined all sources of funding and
pulled together funds to cover the
outstanding payments for February
and March, which will allow the
buses to run again on Wednesday.
The department has a contract to
pay the Abramson Enterprises about
$4 million annually to provide bus
service, and the account had been
paid in full through the end of
January, Pancham said.
While the payments have been
made, officials made it clear
Tuesday that this is just a short-term
fix to a problem that will resurface
if a consistent revenue source is not
found.
Pancham said checks delivered to
the company Tuesday were covered
by funds pulled from other essential
areas — such as janitorial and secu-
rity guard services — that the
department now may not be able to
maintain.
Education officials will continue
to work with the V.I. Office of
Management and Budget to address
the shortfall and to pay future trans-
portation bills, which officials said
cannot be covered by the depart-
ment’s already strained General Fund
budget, according to Pancham.
The Education Department was
notified two weeks ago by Abramson
Enterprises that it was behind on its
payments to provide school bus service
in the district, leaving open the possi-
bility of a suspension of service,
according to Pancham.
A spokesman for Abramson
Enterprises did not respond to Daily
News calls Monday or Tuesday.
When classes resumed Monday
morning after the V.I. Carnival break,
students on St. Croix waiting for
school buses were left stranded.
The lack of any notice from the
Education Department angered many
parents whose children were left
standing at the bus stop.
St. Croix School Superintendant
Gary Molloy said Tuesday that he is
aware of the disruption that the sus-
pension of the bus service caused in
the district for students and their par-
ents and regrets the inconvenience it
caused.
Attendance also suffered, primari-
ly on Monday and a little on Tuesday,
because some parents had no alter-
nate means to get their children to
school, he said.
Molloy said the department was
not completely caught off-guard by
the disruption of service, but the ser-
vice suspension still was something
Education officials did not expect on
Monday.
“We had some inkling that they
could pull the buses, but not this
soon” he said. “I guess based on how
we were processing the checks and
their expectation, it was not met.”
Education Commissioner LaVerne
Terry said the department’s resources
will continue to be affected if they
are not able to get the bus situation
under control.
“We want to assure the public that
we will continue to work with the
Office of Management and Budget to
address the funding we need to ensure
that the bills for upcoming months
will be paid,” she said in a prepared
statement issued Tuesday afternoon.
On Monday, Sen. Janette Millin
Young, chairwoman of the Senate’s
Education, Youth and Culture
Committee, blasted the Education
Department, saying it initially had
included $5.7 million in funding for
school bus transportation in an appro-
priations request, but the department
eliminated that item before the
request was submitted to the
Legislature.
Had the department made its actu-
al needs known, the Senate could
have identified and moved funds to
address the bus issue, Millin Young
said.
In response to those comments,
Pancham said that on many occa-
sions, the Education Department has
shared its concerns about the reduc-
tions to its budget and the impact that
it would have on mandatory services,
including transportation.
— Contact reporter Fiona Stokes
a t 7 1 4 - 9 1 4 9 o r e m a i l
fstokes@dailynews.vi.
Money earmarked to pay janitors, guards
reallocated to pay $625,000 bus debt
V.I. Justice Department reacts to Daily News investigation
by launching probe of Her Majesty’s Credit Union
By ALDETH LEWIN
Daily News Staff
ST. THOMAS — V.I. Justice
Department has launched an investi-
gation into Her Majesty’s Credit
Union, and the V.I. Department of
Licensing and Consumer Affairs is
asking credit union members who are
unable to access their money to file a
formal complaint.
Both government actions are the
result of a two-month investigative
report by The Daily News found that
Her Majesty’s Credit Union is operat-
ed by a man with a criminal record,
multiple aliases and a history of failed
business ventures. He currently is
under investigation by the U.S.
Securities and Exchange Commission
and has been jailed in the past for
refusing to cooperate with state inves-
tigators in Colorado looking into pos-
sible fraud.
The credit union, which is unin-
sured and largely unregulated by the
V.I. government, abruptly closed its
doors to the public in February.
Members have had no recourse to
obtain their money, and despite prom-
ises by the credit union’s Chief
Executive Officer Stan McDuffie to
send checks, none have been
received.
Under the V.I. Code, credit unions
not federally chartered and federally
insured are governed by the DLCA.
Her Majesty’s Credit Union is the
only one of six credit unions in the
territory that is not regulated by the
federal government.
Her Majesty’s Credit Union is a
subsidiary of a company called
Jilapuhn, which is run by McDuffie
— who also uses the aliases Stan
Roberson, Stan Roberson-Battle and
Stanley Battle. Jilapuhn is registered
as a corporation with the Lt.
Governor’s Division of Corporations
and Trademarks, but it is not in good
standing.
Jilapuhn filed for a business license
with DLCA in 2005 and in 2008
received a DLCA license to operate a
credit union in the territory. Under the
name Her Majesty’s Credit Union, it
opened in a storefront inside the Tutu
Park Mall on St. Thomas in 2009.
In January, the credit union’s sys-
tem went down — according to the
HMCU employees — and while the
credit union continued to accept
deposits, it refused to allow members
to make withdrawals.
In February, Her Majesty’s Credit
Union shut down with no notice to
members.
DLCACommissioner Wayne Biggs
Jr. sent out a public statement Tuesday
urging any member of the credit union
who has had difficulty gaining access
to accounts or has been unable to
make withdrawal of their deposits to
contact DLCA to file a formal com-
plaint.
“Individuals facing the unfortunate
dilemma of not having access to their
accounts can come to the Department
and meet with a Consumer Protection
Services agent who will assist them in
completing the required paperwork,”
the release said.
The process includes some paper-
work and an interview with a consum-
er protection services agent, Biggs
said.
Biggs said the DLCA is now inves-
tigating the credit union, which could
lead to the revocation of HMCU’s
business license.
“We’re doing our investigation, and
then we will determine what should
happen after that,” he told The Daily
News on Tuesday.
The Daily News investigation also
spurred the V.I. Justice Department to
open an investigation into Her
Majesty’s Credit Union.
“We did start an investigation upon
your call,” V.I. Attorney General
Vincent Frazer said.
When The Daily News contacted
Frazer last month, he said he had not
heard about the credit union and said
he would ask his staff to look into the
matter.
He said his investigation is very
broad and simply is looking into what
happened. Frazer said some victims
have been identified, although he
would not disclose how many.
“That would be a critical part of the
investigation,” he said.
When asked if the Justice
Department plans to file charges
against the credit union or its princi-
pals, Frazer said it is too soon to tell.
“We have to conclude the investi-
gation to know what we can do,” he
said.
Questions about the complaint pro-
cess can be directed to the Department
of Licensing and Consumer Affairs,
Division of Consumer Services, at
774-3130.
DLCA’s St. Thomas office is in
Sub Base on the second floor of the
Property and Procurement Building.
— Contact reporter Aldeth Lewin
a t 7 1 4 - 9 1 1 1 o r e m a i l
alewin@dailynews.vi.
To file a
complaint
Members of Her Majesty’s
Credit Union who have had
trouble accessing their money
can file a formal complaint
with the V.I. Department of
Licensing and Consumer
Affairs. Go to the DLCA’s St.
Thomas office in Sub Base
and ask to speak to a consum-
er protection services agent.
DLCA’s St. Thomas office
is in Sub Base on the sec-
ond floor of the Property and
Procurement Building, near
the public tennis courts.
For more information call
774-3130.
Daily News Photo by THOMAS LAYER
Her Majesty’s Credit Union’s branch in Tutu Park Mall remains closed. The
mall is suing the credit union for failing to pay rent.
Wednesday, May 2, 2012 The Virgin Islands Daily News 3