Investments in Brokered Certificates of Deposit CDs sold by Bentley Financial Services, Inc and Entrust Group

Dear Board of Directors:

This Letter is to advise you that the Securities and Exchange Commission (“SEC”) has charged Robert L. Bentley, Bentley Financial Services, Inc. (“BFS”) and Entrust Group (“EG”) (Defendants), located in Paoli, Pennsylvania, with securities fraud for selling securities misrepresented as insured certificates of deposit (CDs). BFS was a CD broker and EG acted as the custodian for CDs placed through BFS. The SEC alleges BFS sold financial instruments to investors with interest rates and maturity dates that varied substantially from the underlying CDs. Many credit unions were included on the client list of BFS. NCUA has previously issued advisories on this subject.

On October 24, 2001, David H. Marion, Esq. with the firm of Montgomery, McCracken, Walker & Rhoades LLP, was appointed Receiver for the Defendants’ assets by Judge Jay C. Waldman of the United States District Court for the Eastern District of Pennsylvania (“Court”). NCUA is maintaining close contact with the SEC, the Receiver, and other federal and state regulatory agencies involved in the case, and will keep you informed of any pertinent information received.

In accordance with a Court Order issued November 7, 2001, the Receiver is currently making a preliminary accounting to determine the extent, location and availability of any assets of the Defendants. As part of this effort the Receiver has provided a letter to the Defendants’ customers. A copy of the letter is attached for your information. After the preliminary accounting is made and submitted to the Court, the Court will determine when and how to release information to all interested parties. Unfortunately, the Receiver is NCUA LETTER TO CREDIT UNIONS unable at this time to provide a definite date for when the final results of the accounting will be available to the public.

No claims procedures or claims filings deadline have been established. As soon as the Receiver learns of claims procedures or a claims filings deadline, he will make this information known via the following Web site: http://www.bfscorp.net. Interested parties should visit the web site or contact the Receiver directly at 215-772-7434.

Recommendations

If you have not already done so, credit unions with investments in BFS or EG should promptly photocopy any documentation you possess that pertains to investments made through Robert L. Bentley, Bentley Financial Services, Inc., or Entrust Group. Please mail your documentation to:

David H. Marion, Receiver
Bentley Financial Services, Inc.
P.O. Box 22473
Philadelphia, PA 19110-2473

This will help the Receiver in assembling and verifying assets and potential claims against the assets. Meanwhile, credit unions that hold frozen Bentley CDs may contact Mr. Marion at the above number for information about their funds.