The Service Center for Credit Unions Inc., which served sixcredit unions that were shuttered last week due to insolvency, isexpected to close its doors, according to a credit union executiveand a center employee.

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Yolanda Greene, president/CEO for the $1.3 million PaperConverters Local 286/1034 Federal Credit Union in Philadelphia,said she was told that the service center is expected to closeperhaps within 48 hours.

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“It’s unfortunate, but that’s the only reaction that I have towhat is going on,” she said when contacted by CU TimesMonday. She declined further comment.

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The service center in Bensalem Township, Pa., provided servicesto Paper Converters and 15 other credit unions, including six smallcooperatives in the Philadelphia area that were suddenly closedbecause of insolvency, according to an April 5 statement from the NCUA.

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Joni Brown was listed as the president/CEO of all six of theshuttered credit unions. She is also the owner of the servicecenter, which is a private business.

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On April 4, a search warrant was authorized by a federal courtin Philadelphia for what is believed to be Joni Brown’s house inWillow Grove, Pa. The search warrant document, obtained by theCU Times, listed Joan Brown as the owner of the house.

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FBI agents executed the search warrant at Brown’s house on themorning of April 5 and seized three thumb storage drives, a desktopcomputer and miscellaneous financial, banking and accountingdocuments. The search warrant did not specify the total amount ofdocuments that were taken by the FBI.

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CU Times called the service center Monday to requestcomments from Brown about the search warrant. A person whoidentified himself as Jim and as an employee of the service centersaid Brown was not there. He declined to provide his last name.

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However, Jim said he and four other employees expected thecenter to close, even though they have not been officially toldanything yet by the center’s owner.

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“That’s what we are expecting. We’re waiting for the other shoeto drop here,” he said. “But nobody has told us, so we continue toreport to the office. We all feel that we have responsibility tothe clients that remain.”

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He also said NCUA examiners had been at the service center forweeks. The employee declined any further comment and referred callsto the NCUA.

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Ben C. Hardaway, an NCUA communications specialist, said becausethe service center is a private business, the federal agency has noauthority over it. He declined to comment on whether the federalagency is aware that the center is expected to close.

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Hardaway also declined to confirm whether NCUA examiners hadbeen at the service center for weeks because of supervisorymatters.

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The closed credit unions were CardozoLodge Federal Credit Union, ElectricalInspectors Federal Credit Union, O P SEMP Federal Credit Union, ServcoFederal Credit Union and TriangleInterests % Service Center Federal Credit Union of Bensalem,Pa., and ChesterUpland School Employees Federal Credit Union of Chester,Pa.

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CU Times called the number for Rector FCU, but arecording said the number was no longer in service.

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The credit unions that will be affected if the service centercloses are the $119,592 Wesley AME Zion Federal Credit Union, the$3.3 million Asbestos Workers Local 14 Federal Credit Union, the$402,055 Bright Hope Federal Credit Union, the $845,199 ECAIFederal Credit Union, the $840,612 Mount Carmel Baptist FederalCredit Union, the $11.8 million Northwood Federal Credit Union, andthe $1.4 million Paper Converters Local 286/1034 Federal CreditUnion. All of these cooperatives are based in Philadelphia.

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The $62 million Eagle Once Federal Credit Union in Claymont,Del., and the $73,549 First African Baptist Church Federal CreditUnion in Sharon Hill, Pa., also receive services from the servicecenter.

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Phone messages left with several CEOs of these credit unionswere not returned Monday and two other CEOs declined comment.

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CU Times called Brown’s home phone number Mondayseeking comment. In addition to contacting the service center,CU Times sent Brown two emails and a message via herLinkedIn account requesting her comments. She did not respond tothe email or voicemails.

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