But Seattle-based Federal Savings had all the appearances of a bank. Its Web site carried what looked to her like a Federal Deposit Insurance Corp. logo, and she assumed that meant deposits were insured by the government agency.[...]Ironically, their web site claims that they are "the unbank" -- and turns out they were not a real bank afterall. So, you don't have to be a real bank to collect money! How many other "unbanks" are out there?
Federal Savings is not registered in the state of Washington or with any federal agency to sell certificates of deposits or any securities, said Martin Cordell, chief of enforcement with the state Department of Financial Institutions' securities division.
Two weeks ago, after investigating complaints about the company, DFI issued a cease-and-desist order against Federal Savings, First Bancshares Inc., JMA Northwest Investments and Jeremy M. Stamper, a Seattle businessman.
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