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.
how is it even possible that the ceo of a $20M asset credit union can steal $40M?
ReplyDeleteI 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?
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