An Aurora man was sentenced to one year in jail for failing to produce documents into his Virgin Islands-based credit union to the Colorado Division of Securities.
Stanley B. Roberson is the CEO of Her Majesty’s Credit Union in the U.S. Virgin Islands, which also has a servicing office in Denver.
Roberson failed to produce documents pursuant to a lawful subpoena issued to him as part of the investigation into the credit union, said Commissioner Fred Joseph. The division then filed contempt of court proceedings in Denver district courts.
The credit union’s accounts are not federally insured, and the division was trying to determine if the credit union was offering only uninsured deposits or if it was engaging in the offer and sale of unregistered securities.
The credit union offers certificates of deposit to consumers over the Internet at interest rates above the prevailing bank CD rates. Her Majesty’s Credit Union is not chartered by the Colorado Division of Financial Serves nor the National Credit Union Administration, both of which regulate credit unions in Colorado.
At the hearing, Denver District Court Judge Michael Martinez found Roberson in direct contempt and sentenced him to six months in jail. In addition, he sentenced him to an additional six months for failing to produce the documents. The sentence will be reduced if Roberson produces the records.