Fake Credit Union Operator Nearly Skirts N.M. Regulator
The operator of a fake credit union was about to receive approval for a business application to run an airport shuttle business in New Mexico when state authorities caught wind of his past crime.
According to a November 2012 SEC complaint filed in the U.S. District Court for the District of Colorado, from 2008 through September 2012, Stanley B. McDuffie offered fraudulent and unregistered certificates of deposit under the name Her Majesty’s Credit Union based in the U.S. Virgin Islands.
Investors were bilked out of more than $500,000.
The SEC said HMCU has never been a federally or state-chartered credit union, has never been regulated as a credit union by any government authority, has never held insurance covering its investor deposits, and has never been insured by Lloyd's of London as it has claimed, according to the SEC.
McDuffie, who has offices in Greenwood Village, Colo., applied for a business license to run Sun Shuttle, an airport transport service around Santa Fe, N.M., according to the New Mexico Public Regulation Commission.
Michael Cadigan, an attorney who represented a cab company challenging McDuffie’s application, discovered his affiliation with HMCU after doing a Google search and alerted New Mexico authorities during a July 31 hearing.
Cadigan said he cross-examined McDuffie, who admitted to everything but claimed he didn’t think an embezzlement conviction in 1994 would count because the crime was more than 10 years old. Cadigan eventually pulled his business application for the airport shuttle.
McDuffie is no stranger to state and federal regulators. He has operated under several aliases including Stanley Roberson and Stanley Battle, according to the SEC.
In December 2010, a Colorado judge sentenced Roberson to six months in jail for not complying with a subpoena by Colorado officials investigating the credit union's sales of certain securities.
In June 2011, the NCUA prohibited Roberson from any future work at any federally insured financial institution.