The $1.9 billion University of Wisconsin Credit Union recently disclosed it is among the victims of an alleged nationwide fraud scheme. The scam may involve more than $175 million in bogus U.S. Department of Agriculture-backed loans that were sold to financial institutions, retirement funds, municipal groups and other investors across the country, according to the credit union and court documents.
The credit union said it was recently notified of an alleged scam that hit Milwaukee-based Pennant Management, the leading purchaser of USDA-guaranteed Rural Development Business & Industry loans.
As a result UW Credit Union, which uses Pennant, took an investment loss contingency charge of $13.1 million against year-to-date earnings, according to a statement issued by the credit union.
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