ST. THOMAS, V.I. (7/17/13)--The former CEO of Her Majesty's CU, a bogus credit union that was doing business and soliciting investors in Colorado and in the Virgin Islands, pleaded not guilty to charges of obtaining money by false pretenses, conspiracy, embezzlement by fiduciaries, and violating the territory's anti-racketeering statute in a court in Virgin Islands.
The pleading by Stan McDuffie--also known as Stan Roberson, Stan Roberson-Battle, and Stanley B. Battle--was in absentia during an arraignment on March 21, according to the Virgin Islands Daily News (March 23). The case has been referred to Virgin Islands Superior Court Judge Adam Christian, said the article.
McDuffie, 46, was freed on $50,000 bond and let go after turning in his passport and signing an automatic waiver of extradition, according to the Denver Post (March 15). The paper reported that the company's comptroller, John Williams, also was charged and was still at large.
The credit union is a subsidiary of Jilapuhn Inc. and did business both as Her Majesty's CU and as HMCU, even though it was not insured and it was not chartered by the Colorado Division of Financial Services or the National Credit Union Administration (News Now Nov. 13, 2012).
In 2011, NCUA issued a prohibition order against Roberson from future work at any federally insured financial institution (News Now June 3, 2011).
The Securities and Exchange Commission filed a legal complaint on Nov. 8, 2012, against the company for offering fraudulent and unregistered "purported certificates of deposits" under the credit union's name. Its complaint said the McDuffie and HMCU used the HMCU website to "lure investors" by CDs with above-market rates. On Feb. 8, McDuffie denied the SEC the allegations and blamed regulators for failures.