Links in “Financial Crime”

While the credit union industry applauds the efforts of the CFPB to protect consumers’ interests and to ensure that consumers have access to affordable financial services, there is concern that the CFPB needs to balance its goals against the need for credit unions to manage risk and protect against fraud. [10/10/14]

A former senior loan officer at Middle Tennessee FCU, who was working on degrees in accounting and law, has pled guilty to embezzling more than $370,000 from the credit union. Latisha Cochran admitted to creating fictitious membership accounts, loans, and credit card accounts from 2006 to 2013. Interestingly, Ms. Cochran hosted a blog that emphasized the benefits of credit union membership and described herself as a “highly creative, recognized as a results-oriented and solution focused individual.” [9/23/14]

Santa Ana, California — David Lugo, former IT vice president of SchoolsFirst Federal Credit Union, admits to having embezzled over $2.6 million dollars by ordering unnecessary IT equipment and billing the credit union for it. Will they never learn? [9/19/14]

The FTC is mailing over $1.7 million in refund checks to consumers harmed by AmeriDebt's fraudulent activities. This credit counseling and debt management scam led 60,813 consumers to believe they would be receiving training on how to handle finances and credit, but instead left them out to dry. The refund checks being sent add to the $15 million the FTC has already sent for this scam alone. [9/19/14]

A Missouri-based online payday loan company has received a temporary restraining order from the FTC due to illegal lending practices. In an 11-month period, the company issued $28 million in loans, and collected over $46.5 million. [9/18/14]

The CFPB announced Wednesday its actions against the Hydra Group, alleged to be running an illegal cash-grab scam. The company is purported to use consumer information purchased from lead generators to illegally deposit payday loans into consumers accounts, then withdraw fees without consent. [9/18/14]

The CFPB and FTC have shut down two operations that swindled consumers who were looking for loans online and had money withdrawn from their bank accounts under false pretenses over a period of time. Victims said they couldn't stop the companies from drawing money out of their accounts. [9/18/14]

Tellers at several banks in New York were part of a ring that stole sensitive customer info to gain access to accounts. They made off with more than $850,000 over the years. Four are under arrest, but one teller is still being sought. [9/17/14]

Criminals can use an iPhone attachment to turn their iPhone into an infrared camera to take a picture of the keypad right after it is used, allowing them to see which keys were pressed and in which order, since the first keys pressed will show less heat. Here's a tip for protecting against this threat. [9/2/14]

In a meeting held August 27, 2014, the SEC unanimously approved a set of final rules which will change the reporting requirements and offering process of publicly issued, asset-backed securities. Regulation AB II, in its initial stages four years ago, is undergoing finalization. Issuance-related requirements will be effective one year following publication in the Federal Register; disclosure-related requirements will be enforced two years following final publication. [8/29/14]