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.

"It was never my intention to represent my current project of launching the Indian Federal Credit Union as a functional bank; it has always been represented as a proposed project on the website," he said. "However to eliminate any confusion, I have taken down the website for now and the page is currently under construction. I am in the process of setting up the Indian Federal Credit Union now.  I will relaunch the website once we have all systems in place to conduct business and full approval."

Macherla said he plans to submit an application for a federal charter by the end of March 2019.

"The NCUA is aware of an organization purporting to be the 'Indian Federal Credit Union' and cannot comment any further on pending investigations," John Fairbanks said, the independent agency's spokesperson.

Macherla, who also said he earns a living as a high-tech engineering professional, noted he has recruited an advisory panel of professionals from a variety of backgrounds to assist him with the formation of the credit union that will serve the three million Indian-Americans across the U.S.

"I am very excited about this project," he said.

The DBO's order against IFCU is the second cease and desist order issued by the state regulator in 2018.

In May, the DBO said Coceptive Credit Union was operating without a required state certificate in the heart of San Francisco's financial district since 2015. Coceptive allegedly contacted prospective members via telephone or website. In at least one case, a Conceptive CU senior loan officer allegedly collected an advance fee of $600 from one member for a loan, but failed to make the loan, according to the DBO.

The DBO cease and desist order against IFCU did not state whether IFCU approved any loans or signed up anyone for financial products or services.