BEAVER, Pa. (2/18/09)--The Pennsylvania Securities Commission has accused a Beaver, Pa., man of violating state securities laws for the past 16 years in a ponzi scheme that included defrauding two credit unions out of nearly $200,000. The commission, which did not identify the credit unions, said in an order filed Tuesday against Eugene Miley, doing business as Miley Financial Services based in Beaver, that he had offered and sold certificates of deposit to federal credit unions in the state since 1993 (timesonline.com Feb. 17). The order said Miley asked credit unions to wire money to him to buy the certificates. In return he would make monthly interest payments to the credit union and return the upfront investment when the certificates matured. However, the commission said Miley did not buy certificates but kept the up-front investment funds or made monthly interest payments to other credit unions. He would send phony confirmation letters to clients indicating he had bought the certificates. The two credit unions tried to collect their upfront investments when they matured in January. Each lost about $99,000, said the commission, which did not say how much was allegedly mishandled beyond the two credit unions. The commission ordered Miley to cease the alleged conduct, which violates state securities laws, or face charges.