WASHINGTON -- LPL Financial Corp. has been charged with failing to adopt policies and procedures to safeguard 10,000 of its customers' personal information following a series of hacking incidents involving the broker-dealer's online trading platform, the Securities and Exchange Commission said.

According to the SEC's order, LPL experienced multiple hacking incidents between July 2007 and early 2008, and unauthorized persons gained access to the online trading platform LPL provided for its registered representatives. The perpetrators placed or attempted to place 209 unauthorized securities trades worth more than $700,000 combined in 68 customer accounts, the SEC said.

The SEC found that the firm conducted an internal audit in mid-2006 that identified inadequate security controls to safeguard customer information at its branch offices. LPL's audit specifically identified the risk from hacking. The commission said LPL failed to take timely corrective action because, by the time that hacking incidents began in July 2007, the firm had not implemented increased security measures in response to the identified weaknesses.

LPL agreed to pay a $275,000 penalty to settle the SEC's enforcement action without admitting or denying the findings, according to the commission.

LPL, considered to be the country's largest independent broker-dealer with more than 800 clients and $235 billion in assets under management, counts credit unions among its clients.

Alaska USA FCU Adds Title Agency CUSO

ANCHORAGE, Alaska -- Alaska USA Title Agency LLC is the newest CUSO created by $3.7 billion Alaska USA Federal Credit Union.

The subsidiary will provide title insurance, escrow closing services, and other real property transaction services throughout Alaska. Any individual or business performing real estate transactions can obtain title services from Alaska USA Title, according to the credit union.

Alaska USA's family of financial service companies are Alaska USA Trust Co., Alaska USA Insurance Brokers and Alaska USA Mortgage Co.

In April, Alaska USA Trust added conduit lending services to its lineup through an agreement with LendEx, an electronic auction market that provides real-time, single stock trading and data for institutional securities lending participants.

United Teletech Beta Tests CUNA Mutual Loan Program

TINTON FALLS, N.J. -- CUNA Mutual Group is working with United Teletech Financial Federal Credit Union to test CompleteEd, a new, private student loan program.

In addition to private student loans, the program offers federal student aid loans. Up to $25,000 per year is available for funding on education-related expenses through the program. UTF members receive a 25% discount off of the current loan's interest rate and an additional discount is available for electronic fund transfers.

Leo Ardine, president/CEO of $262 million UTF, said the credit union has a long history of offering academic scholarships and student loans to its members.

"We believe that this program offers an additional simple and valuable tool to parents in our community who are struggling to keep their kids in school," Ardine said.

More than 2,000 colleges and universities now accept the CompleteEd (www.CompleteEd.com) private student loan program, according to CUNA Mutual. The company said it is planning a national launch in 2009.

"We're extremely pleased to have United Teletech Financial participate in the program because they are regarded as a thought leader in the credit union movement," said Jeff Meyer, vice president of CUNA Mutual's CompleteEd program. "It's great to have established credit unions like United Teletech participating in the inaugural season."

New York Exempts State CUs From Mortgage Tax

ALBANY, N.Y. -- New York's state-chartered credit unions won a legislative battle this month when Gov. David A. Paterson signed a bill exempting the credit unions from having to pay a special mortgage recording tax. Federal credit unions were already exempt.

Describing the law as a "major victory for New York credit unions," William J. Mellin, president/CEO of the Credit Union Association of New York, said. He touted the legislation as remedying a charter disparity and enhancing New York's dual chartering system.

The bill also allows federally chartered credit unions that choose to convert to a state charter to retain the exemption.

"This new law levels the playing field, and encourages credit unions to look closely at a state charter. Credit unions will be an increasingly important part of New York's economic revival," State Sen. Hugh Farley, one of the bill's sponsors, said.

The Special Additional Mortgage Recording Tax Act becomes effective in January 2010. The delayed implementation of the law will give state officials time to make up for the estimated $1 million a year that credit unions paid into the state's coffers as a result of the tax, Amy Kramer, vice president of governmental affairs, said.

Numerica Extends Business Services

SPOKANE, Wash. -- To bring services to those small business owners who can not make the trip to downtown Spokane, Numerica Credit Union has partnered with Greater Spokane Inc. to open a BIZStreet information center.

The center, located at Numerica's Wandermere branch, has a number of resources including Internet access to the BIZStreet Web site, business literature, informational brochures and event information. BIZStreet representatives will be available by appointment at the center or by phone, according to the $750 million credit union.

BIZStreet is the small business program of Greater Spokane Inc. According to the organization, 88% of Spokane's companies have fewer than 20 employees.