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CU CEO sentenced to year in jail in securities case
DENVER (12/15/10)--The CEO of a credit union chartered in the U.S. Virgin Islands with a back office operating from Denver, Colo., has been sentenced to one year in jail for contempt of court and failing to produce documents for a securities investigation. Stanley B. Roberson, of Aurora, Colo., CEO of Her Majesty's CU (HMCU), failed to produce documents related to a subpoena issued to him as part of the state's investigation of the credit union, Securities Commissioner Fred Joseph of the Colorado Department of Regulatory Agencies (DORA) told the (Dec. 14). The sentence came from a state judge during a third hearing on the matter Tuesday. Regulators for months have been trying to determine whether Her Majesty's CU is legitimate or a fraud (News Now May 13). Commissioner Chris Myklebust of the Colorado Division of Financial Services told News Now in May that his office was in contact with both the U.S. Virgin Islands and the state securities office about the credit union. Under law, the credit union cannot solicit Coloradoans for business because it is "not a legitimate Colorado credit union," Myklebust said. The credit union is not chartered by the Colorado Division of Financial Services, which is part of DORA, nor the National Credit Union Administration (NCUA). The credit union offers certificates of deposit (CD) to consumers over the Internet at interest rates above prevailing CD rates. One ad on Google promoted 6% to 7% CDs. Its accounts are not federally insured, and the state is trying to determine whether it is offering only uninsured deposits or is engaging in the offer and sale of unregistered securities. Roberson received six months in jail for the contempt charge plus six months for failure to produce the documents subpoenaed. The latter charge can be reduced if he produces the documents. In May, News Now learned that Roberson was CEO of Jilapuhn Inc., a former East Point, Ga., company that was a founding sponsor of another credit union--Jilapuhn Employees FCU, also of East Point. That credit union was formed in January 2005 but liquidated by NCUA eight months later. Roberson claimed in an e-mail that it was insured by Lloyds of London. The Credit Union Association of Colorado met with Roberson in May and determined there were inconsistencies in claims made about the background of HMCU (News Now May 14). Roberson told them that HMCU was the only credit union in the Virgin Islands (there are five other credit unions there); that a federal charter and National Credit Union Share Insurance Fund (NCUSIF) were not available to credit unions chartered in the Virgin Islands (five other credit unions there have the federal charter and NCUSIF insurance); that it was a member of the Credit Union Association of New York (it never has been a member of the association there) and HMCU was a member of the Credit Union National Association (CUNA) (it is not a member, says CUNA). HMCU's website says it was established for the residents of the Virgin Islands, military personnel, employees of the Department of Defense, all affiliated companies and family members of members. It offers bank accounts, ATM cards, insurance, money orders and wire transfers.

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