NCUA Validated Call Report of Conserved CU Now Linked to Online Gambling
Vensure Federal Credit Union booked no loans in 2010 but took in more than $1.8 million in fee income and paid out almost $700,000 in fees for professional services, according to the CU's last report to NCUA in 2010.
NCUA shows the CALL report as “validated.” The agency placed the Arizona credit union in conservatorship on Friday.
Also Friday, the U.S. Attorney for the Southern District of New York revealed that an account at the CU held in the name of Trinity Global Commerce Corp. had been seized in an Internet gambling case.
Vensure Employment Services of Mesa, Ariz., was the credit union’s sole sponsor. Membership was open to Vensure employees and their families, employees at direct affiliates and their families and employees of client companies.
“If your paycheck is issued by Vensure, then you’re eligible to join Vensure FCU,” the CU said on its website, which also offered business services such as wire transfers and QuickBooks.
But the CALL report said the credit union had no programs and offered only “business share accounts” as business services.
A spokesman for the agency declined to comment on Vensure's conservatorship except to note that the CU had been identified in the indictment.
When it assumed control of Vensure FCU last week, the agency said it had $4.7 million in assets and almost 200 members, but the CU's call report lists $2.7 million in assets and under 100 members.
In the indictment, the government alleged that 10 conspirators spread across the largest Internet gambling companies had tried a number of different approaches to fraudulently get U.S. financial institutions to process gambling transactions.
As many of these gradually failed, the conspirators turned to approaching financial institutions directly to process the transactions, the indictment said.