The website belonging to two credit unions that the SEC saidwere fake and allegedly collected more than $12.8 million indeposits has responded to the agency's fraud complaint.

Timothy J. Coughlin, 63, of Indianapolis, was charged withmisappropriating investor money to pay personal expenses, fundingunrelated business expenses, and making distributions to otherinvestors in what the SEC described as a classic Ponzi-schemefashion.

Last week, CU Times reported the SEC's complaintagainst Coughlin and also contacted OxfordPrivacy Group, the website belonging to Oxford InternationalCredit Union or Oxford International Cooperative Union, forcomment.

“We just learned that Mr. Coughlin was arrested on Friday, April11, 2014, and you should be receiving a letter from the UnitedStates Department of Justice notifying you of the same,” read anemail received by CU Times. “They were unable to provide adefinite time frame as to when you will receive thiscorrespondence.”

The SEC complaint alleged that between June 2007 and December2009, Coughlin operated Oxford International Credit Union or OxfordInternational Cooperative Union and collected deposits from morethan 5,000 investors exceeding $12.8 million.

Approximately 3,300 of the investors were U.S. residents, withvictims residing in all 50 states and the District of Columbia,according to the SEC.

“We are sorry but we are unable to provide direct contactinformation on the agents in charge of this case,” read the emailfrom Oxford Privacy Group's customer support division. “As soon aswe receive any further updates on this matter, we will post themimmediately on the back office Bulletin Board.”

The email continued, “Our prayers are with you. We hope we haveanswered your question. Please let us know if we can be of furtherassistance.”

Beginning in December 2008, Coughlin began operating a successorto Oxford International Credit Union, called Oxford InternationalCooperative Union, which boasted bogus investment returns on itswebsite, Oxford Privacy Group, from its inception in late 2008through December 2011, the SEC said.

The SEC's complaint alleged that Coughlin misappropriated atleast $5.97 million and used investor money for illegitimatepurposes, including $1.57 million for personal expenditures and$4.4 million to pay other investors who had requested withdrawalsfrom their Oxford International Credit Union accounts.

Coughlin also transferred money from Oxford International CreditUnion's accounts to bank accounts he controlled in the names of tworelief defendants, according to the SEC.

In late 2008 and 2009, Coughlin began to deny investors'requests for withdrawals from their accounts, the SEC said. Toexplain his refusal to allow investors to access their funds,Coughlin falsely claimed that the Internal Revenue Service andforeign tax authorities had frozen Oxford International CreditUnion and Oxford International Cooperative Union's accounts.