California regulator slaps cease & desist order against CU founder
Atri Macherla complies with the order and still plans to open a cooperative to serve three million Indian-Americans.
A California housing developer said he did not intend to represent a credit union and its website as a functional financial institution after the state regulator slapped him with a legal order to stop operating as the Indian Federal Credit Union in Santa Clara.
California’s Department of Business Oversight has alleged in a Nov. 29 cease and desist order that Indian Federal Credit Union founded by Atri Macherla does not have a required certificate to operate as a credit union in the Golden State.
The state regulator said IFCU had been operating out of a building in the Santa Clara Commerce Park, maintained a website and advertised services typically provided by credit unions such as checking accounts, CDs and bill pay. What’s more, IFCU also boasted on its site that it provides competitive rates on mortgage loans, business loans, student loans, personal loans, credit cards and money transfers to India, native language tellers, an ATM displaying Indian languages, and eHundi, an online money offering service for worshippers who want to donate to Hindu temples.
When reached by the CU Times last week, Macherla said he has taken down the website, but he has not given up on his goal to eventually open a credit union.
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