Vensure FCU Sues NCUA Over Conservatorship
Vensure Federal Credit Union, the small Arizona CU the NCUA took over last week after one of its accounts was seized in a federal Internet gambling investigation, has sued the agency to prevent the takeover from continuing.
In a motion for a temporary restraining order filed in U.S. District Court in Washington, D.C., the credit union said it had complied with the agency’s demand in early January that it stop processing ACH transactions for Trinity Global Corp., a payment processor for online poker sites PokerStars and Full Tilt Poker.
It also said that it had disclosed its relationship with Trinity as well as the nature of its services to the NCUA since the beginning and that its relationship with Trinity had given it some of the resources it was using to become a more traditional, albeit virtual, credit union.
“VFCU has used the revenues received from those ACH services to build its reserves and to open the credit union to a new field of membership – persons associated with Vensure Employer Services, Inc., a growing professional employment services company based in Mesa, Arizona, with over 12,000 participants,” the credit union said.
Although the CU showed very few members in its December 2010 Call Report, Vensure pointed out in its filing that it had added “approximately” 61 accounts this year as of March 31.
When it took control last week, the NCUA said the credit union had $4.7 million in assets and almost 200 members, while the December Call Report listed $2.7 million in assets and under 100 members.