A U.S. District Judge in Denver ordered the founder of a fakecredit union to pay more than $1 million in civil penalties and asrestitution for bilking members out of $532,000 in boguscertificates.

According to court documents, Judge John L. Kane issued hisfinal judgment Oct. 8 against Stanley B. McDuffie of Denver, whofounded HerMajesty's Credit Union in the Virgin Islands and sold $532,591in CDs to four members. Judge Kane ordered McDuffie to pay thattotal amount and an additional $532,591 in a civil penalty to theU.S. Securities and Exchange Commission.

Although McDuffie obtained a basic license to open HMCU in theVirgin Islands in 2007, the credit union was not chartered by theNCUA or by any U.S. state, and was not subject to regulations, theSEC charged in its civil lawsuit filed against McDuffie in November2012.