November 9, 2012
SEC Charges Bogus Credit Union with Offering Fraud
The SEC filed a civil injunctive action against Stanley B. McDuffie, a resident of Denver, Colorado, and his entity, Jilapuhn, Inc., d/b/a Her Majesty's Credit Union (HMCU), in connection with a fraudulent and unregistered offering through which McDuffie and HMCU sold more than $532,000 in alleged certificates of deposits (CDs) to investors. In its complaint, the Commission alleges that from 2008 to 2012, McDuffie and HMCU lured investors to purchase the CDs through the HMCU website and a branch office in the U.S. Virgin Islands. McDuffie and HMCU held out HMCU as a secure, legitimate, regulated credit union, promised to pay above-market interest rates, and assured investors that their deposits were insured by Lloyd's of London or the U.S. Virgin Islands' government. In reality, HMCU was an unregulated, illegitimate credit union that never held share insurance covering investor deposits, and McDuffie and HMCU misappropriated investors' funds.
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