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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.


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