Friday, March 29, 2019

NCUA Closes C B S Employees Federal Credit Union over Alleged Embezzlement

The National Credit Union Administration (NCUA) liquidated C B S Employees Federal Credit Union (Studio City, CA).

University Credit Union (Los Angeles, CA) immediately assumed C B S Employees’ assets, loans, and all member shares.

NCUA made the decision to liquidate C B S Employees because the credit union was insolvent and had no prospect of becoming viable.

According to a press release from U.S. Attorney's Office of Central District of California, a long-time manager of the credit union, who is in federal custody, is alleged to have embezzled $40 million over two decades and spent the money on gambling, expensive cars and watches, and travel by private jets.

At the time of liquidation and subsequent purchase and assumption by University Credit Union, C B S Employees served 2,798 members and had assets of $21,037,558, according to the credit union’s most recent Call Report.

This is the first credit union failure of 2019.

Read the press release.
Posted by at
Labels: ,

2 comments:

  1. AnonymousMarch 31, 2019 at 12:12 PM

    how is it even possible that the ceo of a $20M asset credit union can steal $40M?
    I double checked the various new reports and it doesn't seem to be a typo.
    how is this possible?
    who is the auditor?
    same auditor as municipal cu in ny?
    Dr. Leggett, do $20M asset credit unions not have auditors and examiners?

    ReplyDelete
  2. AnonymousApril 1, 2019 at 1:58 PM

    CU's aren't required to have internal audit, and one this small doesn't even need a formal audit. it be done by volunteer board members....

    ReplyDelete

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.