Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Manager of defunct CU charged with fraud
NORTH  PHILADELPHIA, Pa. (8/9/12)--Federal prosecutors Tuesday charged the former manager of now-defunct Borinquen FCU (BFCU) in North Philadelphia, Pa., with conspiracy to defraud the government.

Ignacio "Nacho" Morales, 40, also was charged with embezzling more than $2.3 million from the credit union, which led to its closure (bizjournals.com and The Philadelphia Inquirer Aug. 7).

Morales allegedly used the money in attempts to purchase cocaine and real estate, federal authorities said.

BFCU served low-income Hispanics in North Philadelphia. The National Credit Union Administration assumed control over the credit union in June 2011, but shuttered it within two weeks and liquidated its assets, the Inquirer said.

Chartered in 1974, BFCU had assets of  roughly $6 million and served 8,600 members.

In addition to the conspiracy to defraud the government embezzlement charges, Morales also is accused of making false reports on federal credit institution entries, filing false income tax returns, engaging in monetary transactions in property derived from specified unlawful activity, and attempted possession with intent to distribute more than five kilograms of cocaine.


RSS print
News Now LiveWire
NCUA re-schedules start of tomorrow's closed meeting to 9 a.m. ET. Open meeting still at 10 a.m. ET.
14 hours ago
.@lisamurkowski @SenatorEnzi @SenJohnBarrasso are latest to weigh in on NCUA risk-based capital proposal. See #NewsNow tomorrow for more
15 hours ago
Now up on News Now: Fed stays course on taper, interest rates http://t.co/6DntsW58vA
17 hours ago
Positive performance indicators and the potential for rising interest rates in @TheNCUA 's latest economic update. http://t.co/yptPbIGvnU
20 hours ago
The @CFPB has launched a nationwide effort to provide financial education. http://t.co/sF3FXHpv3k
20 hours ago