In denying the appeal, NCUA wrote that "[t]he LUA at issue in this case is not an order issued in connection with a formal enforcement proceeding, nor is it a written agreement that is specifically enforceable by the NCUA Board. Instead, the LUA is a supervisory tool that memorializes a commitment undertaken by the management of Telesis to take affirmative steps to address concerns identified by the examiner."
The agency rejected the FOIA appeal because it determined that LUA was an outgrowth of Telesis's last examination and was exempt from release based upon exemption 8. NCUA wrote that "all records, regardless of the source, of a financial institution's financial condition and operations that are in possession of a federal agency responsible for its regulation or supervision are exempt."
Also, the agency said that much of the material comprising the LUA is confidential in nature and thus qualify for protection under exemption 4.
Below is the letter (click on image to enlarge).
If the NCUA granted your request it would expose the NCUA for mismanagement and gross incompetence at Telesis. Telesis has consistently reported negative income each and every year since 2007. In 2010 CEO Grace Mayo Reported compensation of $2,163,274. In 2010 the credit union reported negative income exceeding $11,000,000. AutoSeekers CEO Walt Agius married Telesis CEO Grace Mayo. Telesis bought AutoSeekers. Even the NCUA OIG questioned to whom the benefit flowed. Telesis was a CAMEL code 4 since 2007 and still the NCUA continued to allow the credit union to bleed out until March, 2012 when they finally placed it into conservatorship. Nice try Keith, but the NCUA will not allow you to expose their incompetence. Maybe a lawsuit and subsequent discovery will accomplish your objective.
ReplyDeleteWhere is Issa when you need him.
ReplyDeleteThis sordid mess is behavior worse than big banks on a relative basis and a watergate cover up.