DENVER and WASHINGTON (5/13/10)--A credit union chartered in the U.S. Virgin Islands with a Denver back office is promoting 6%-7% certificates of deposit in an ad on Google.
The credit union was formed by Stan Roberson, CEO of Jilapuhn Inc., of Denver, formerly of East Point, Ga. Roberson's company was the founding sponsor of another credit union--Jilapuhn Employees FCU in East Point, Ga., which was formed in January of 2005 but liquidated by the NCUA eight months later.
No one has proved the credit union isn't legitimate. Due to a loophole, the state of Colorado has no legal standing to shut the credit union down. NCUA has no standing either.
"This is a Virgin Island-licensed, uninsured entity," said John McKechnie, NCUA director of public and congressional affairs. "They call themselves a 'credit union' and Virgin Island authorities are apparently unable to do anything about this. They aren't advertising as federally insured and [make] no references to NCUA so, we have no authority," he told News Now.