The SEC said McDuffie made misleading statements saying HMCU was a secure credit union that was regulated and that it held insurance covering investor deposits.

McDuffie has several aliases including Stanley Roberson and Stanley Battle, according to the SEC.

The U.S. Virgin Islands-based entity has come under scrutiny from the NCUA and other regulators over the past few years.

In December 2010, a Colorado judge sentenced Roberson to six months in jail for not complying with a subpoena by Colorado officials investigating the credit union's sales of certain securities.

In June 2011, the NCUA prohibited Roberson from any future work at any federally insured financial institution.

HMCU has never been a federally or state-chartered credit union, has never been regulated as a credit union by any government authority, has never held insurance covering its investor deposits, and has never been insured by Lloyd's of London as it has claimed, according to the SEC.

In addition to charging McDuffie with engaging in schemes to defraud and violating sections of the Securities Act, the SEC has also charged him with offering and selling unregistered securities, obtaining money or property on the basis of misleading statements and omission, and making misleading statements and omissions.

The SEC said it is asking the court for relief in the form of a finding that the defendants committed the violations and that unless restrained will continue to do so. The agency has also sought an injunction to permanently restrain and enjoin the defendants from violating the laws as alleged against them in the SEC complaint and order the defendants to disgorge any and all illegal gains and pay civil money penalties, as well as any other relief the court may deem appropriate.