Fraud Probed In CU Failure
July 29, 2010
Total Loss:
$3.7 Million
NCUA is investigating allegations that manager fraud caused a failure at Mutual Diversified Employees FCU, a one-time $10 million credit union that was closed and folded into nearby giant SchoolsFirst FCU in February.
Documents filed in a civil suit allege manager malfeasance in the failure, with one member claiming his elderly grandmother, who is suffering from dementia, lost more than $175,000 of funds that were misplaced by the president of the credit union. In her suit, the member charged fraud, fiduciary abuse, elder abuse and unjust enrichment.
Source:
Credit Union Journal
Posted in:
Internal Fraud