SACRAMENTO, Calif.–California’s Department of Business Oversight has issued a cease-and-desist order against a business operating as a “credit union” but which does not yet have regulatory approval to do so.
According to the order, the Santa Clara, Calif.-based Indiana FCU is being operated by Atri Macherla, who is identified as both founder and organizer. The order notes that the company’s former website—which now announces it is under construction—had been promoting a number of financial services offerings, ranging from savings products to bill pay to loans to ATMs “displaying Indian languages.”
“Pursuant to Financial Code section 14150, ‘No membership, shares, certificates for funds or other securities shall be issued by any credit union until it has applied for and obtained from the commissioner a certificate authorizing it to act as a credit union’,” the DBO’s order reads. “IFCU holds no certificate, nor has it applied for any certificate to operate as a credit union in this state.”
The cease-and-desist order requires the business to stop advertising itself as a credit union until it obtains a certificate from the regulator.
The order can be found here.