* AUSTIN, Texas (2/11/10)--Austin, Texas-based Velocity CU sent members a letter this week announcing it will not switch to private share insurance as originally planned. The credit union had proposed switching to coverage by American Share Insurance Corp.(ASI), a private share insurer based in Ohio, because the National Credit Union Administration (NCUA) began charging fees that equaled 0.15% of insured deposits to shore up the National Credit Union Share Insurance Fund during the corporate credit union crisis. However, the $499.3 million asset credit union learned that ASI will begin charging the same fees. That eliminated the main reason for switching insurance, said the credit union. Members voted in December in favor of the switch before the credit union learned of the ASI fee increase (American-Statesman
Feb. 10) ... * MERIDEN, Conn. (2/11/10)--The Credit Union League of Connecticut
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kicked off its 2010 Compliance School on Truth in Lending with nearly 100 credit union representatives attending. Here, league President/CEO Tony Emerson introduces Martha Howell of M&M Consulting and leader of the first section of the compliance school. "Hang on," she told the audience during her 60-page presentation. "These slides were done a week ago, but in today's wild regulatory environment, who knows what will be here tomorrow." More compliance information will follow in two-day sessions during the next five months. (Photo provided by the Credit Union League of Connecticut) ... * RYE, N.Y. (2/11/10)--The chief financial officer of Affina Brokerage Services, which is owned by USAlliance FCU, Rye, N.Y., was sentenced to three to nine years in state prison for embezzling more than $2.2 million in stocks. John P. Walsh of Yonkers swindled the firm from June 17, 1999 to Jan. 27, 2008 by illegally transferring shares of stock from the $772.9 million asset credit union into accounts he controlled and then sold for cash. He also created phony stocks and used them as collateral for loans, according to police. He was ordered to pay $2.265 million in restitution to the insurance company that covered the loss, but Walsh's attorney said that Walsh is indigent with his house in foreclosure (The Journal News
Feb. 10) ... * AMARILLO, Texas (2/11/10)--Shannon Leigh Layton, a former employee of Texas Plains FCU, Amarillo, Texas, was sentenced Tuesday to 30 months in prison and ordered to pay $221,000 in restitution after pleading guilty to stealing $221,000 from the credit union by making false entries. According to court documents, the thefts occurred between 2002 and August 2009. In 2009, she went to the Amarillo Police Department and confessed she had been stealing from the credit union (Targeted News Service
Feb. 9) ... * MEMPHIS, Tenn. (2/11/10)--A Shelby County jailer was arrested as the 'stumbling bandit' who mumbled and couldn't make herself understood during attempted robberies at two credit unions in Raleigh Feb. 2. Phtosa Dennis, 42, was charged with bank robbery and using a gun during one of the crimes. The first attempted robbery occurred at before 10 a.m. at Southern Security FCU. When the robber walked up to the teller and verbally demanded money, the teller couldn't understand what she was saying. The robber then produced a holdup note, but fled the building before receiving any money. Later, a robber entered First South CU, stood in line, then brandished a gun and handed over a demand note. However, the teller ran from the counter when she saw the gun. The robber fled but stumbled and dropped her weapon. Dennis was relieved of duty with pay while the investigation continues, said the Shelby County Sheriff's Department (The Commercial Appeal
Feb. 9) ...