The NCUA is embroiled in a court battle with CUMIS over its controversial decision not to pay a $3 million dollar fidelity bond claim after a forensic auditor determined a CEO's embezzlement scheme caused a loss of more than $10 million that collapsed a Little Falls, Minn., credit union.
While this case has not been settled yet, legal and credit union experts say it can offer key takeaways for executives to protect their credit unions.
Moreover, related to this, the NCUA v CUMIS legal dispute is a civil lawsuit that the NCUA filed in January against the former CEO of the $51 million St. Francis Campus Credit Union, Margurite M. Cofell. The lawsuit alleges that the 60-year-old woman of Little Falls, Minn., embezzled $2.8 million over 15 years. However, Cofell allegedly began stealing in the mid-1990s from the credit union, which led to a total loss that likely exceeded $10 million, according to a forensic auditor's report filed with the lawsuit.
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