AG finishing up Her Magesty's Credit Union investigation
Published: September 4, 2012
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ST. THOMAS - V.I. Attorney General Vincent Frazer said the investigation into Her Majesty's Credit Union is wrapping up, and in the next few weeks, the department will decide whether to file charges.
Justice and the V.I. Department of Licensing and Consumer Affairs launched an investigation into Her Majesty's Credit Union following a two-month investigative report published by The Daily News. The newspaper found that Her Majesty's Credit Union is operated by a man with a criminal record, multiple aliases and a history of failed business ventures. He currently is under investigation by the U.S. Securities and Exchange Commission and has been jailed in the past for refusing to cooperate with state investigators in Colorado looking into possible fraud. The credit union, which is uninsured and largely unregulated by the V.I. government, abruptly closed its doors to the public in February.
Under the V.I. Code, credit unions not federally chartered and federally insured are governed by the DLCA. Her Majesty's Credit Union is the only one of six credit unions in the territory that is not regulated by the federal government.
Her Majesty's Credit Union is a subsidiary of a company called Jilapuhn, which is run by the credit union's Chief Executive Officer Stan McDuffie - who also uses the aliases Stan Roberson, Stan Roberson-Battle and Stanley Battle. Jilapuhn is registered as a corporation with the Lt. Governor's Division of Corporations and Trademarks, but it is not in good standing. Jilapuhn filed for a business license with DLCA in 2005 and in 2008 received a DLCA license to operate a credit union in the territory. Under the name Her Majesty's Credit Union, it opened in a storefront inside the Tutu Park Mall on St. Thomas in 2009.
In January, the credit union's members were told the computer system went down and while the credit union continued to accept deposits, it refused to allow members to make withdrawals.
In February, Her Majesty's Credit Union shut down with no notice to members.
Frazer and DLCA Commissioner Wayne Biggs Jr. announced they were launching an investigation into the credit union the day after The Daily News investigation was published.
Biggs said about 17 complaints were filed with his agency.
"We're still accepting the complaints and then turning them over to the A.G.," Biggs said.
He said his agency subpoenaed documents from the credit union, but had not scheduled an administrative hearing to revoke HMCU's business license because the license was set to expire at the end of August.
"It is expected that we will not renew their business license until we can get everything rectified and straightened out," Biggs said in July.
Frazer said that since May, investigators have interviewed members and HMCU staff.
"We did interview the principles," he said.
Investigators soon will submit their report to the attorney general, and based on the report, Justice officials will decide whether criminal charges can be filed.
"That investigation is continuing, and we expect to wrap it up in the next couple of weeks," Frazer said.
- Contact reporter Aldeth Lewin at 714-9111 or email email@example.com.