Tuesday, August 26, 2014

How Much Did NCUA Recover from Former Texans CEO?

On Friday, the National Credit Union Administration (NCUA) announced a lifetime ban against David Addison, the former CEO of Texans Credit Union (TCU) in Richardson, Texas, from becoming an employee of, holding any office in or serving as a board member of any federally insured credit union or credit union service organization.

Addison consent to the cease and desist order without admitting fault.

NCUA also announced the settlement of its lawsuit against Mr. Addison.

When NCUA announced its lawsuit against Mr. Addison on December 20, 2012, NCUA Chairman Matz said the following:

"NCUA is required by statute to take every action we can to recover TCU’s losses, including legal action. Any recoveries in this case will go directly to TCU, assisting in NCUA’s rehabilitation efforts at TCU. Mr. Addison’s actions were very costly to the credit union, and financial institution regulators have a responsibility to hold accountable those parties—institutions or individuals—when they undermine safety and soundness."

However, the cease and desist order did not include any information on recoveries and a NCUA spokesperson was not able to comment on any monetary settlement with Mr. Addison.

So, one can only speculate -- did NCUA trade-off a lifetime ban for not pursuing damages against Mr. Addison?

We may never know.

Read the cease and desist order.
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