SEC Sues Fake Caribbean Credit Union

From the Credit Union Times

Does a 7.75% rate on a CD grab your fancy?

Indeed, and exactly this was an offer at Her Majesty’s Credit Union in the Virgin Islands.

One small problem. It wasn’t actually a chartered credit union.

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The article said that four people had bought CDs from this fake credit union, and one paid $365,000. Those people should have read my post When is a CD Rate Too Good to Be True? Verifying FDIC or NCUA Membership.