D. Edward Wells Moves Case Out of the Courts and into the Legislative Arena

SPRINGFIELD, Mass.-Attorney Mary-Ann Lane, representing former officials of D. Edward Wells Federal Credit Union, wrote U.S. District Court Judge Michael A. Ponsor that the officials had decided not to pursue their contest of NCUA’s conservatorship in the courts. Lane complained on behalf of the former officials that they were not given an equal opportunity before the court because NCUA had complete access to the credit union’s records while Lane did not. Additionally, she said that most courts scheduled show cause hearings and lay out the parameters a day or two before the actual hearing, which Ponsor did not allow for. “Lastly,” the April 14 letter read, “the parties are aware that the statute, which governs the proceeding, as voted into law by Congress, does not allow for the parties, (NCUA and the Credit Union) to appear as equals before the Court and does not allow for both parties to have equal access to justice on the merits. Congress has circumscribed the action to such an extent, as to be so unequal, that no Credit Union, to date, has successfully defended against Conservatorship, before any Court in the land. For this reason, it is for Congress to address the inequity of law that it created. Courts do not create law, they only apply it. The former Officers and Board Members of the Credit Union have limited resources, and have chosen to address their concerns to Congress in seeking to change the law.” On a more personal note, Lane added allegations that as a Springfield resident, she felt the community was losing a “valued institution” and is suffering “significant financial losses as a result of NCUA’s action.” NCUA Public Affairs Specialist Cherie Umbel said that the vast majority of member accounts are operating as normal, but NCUA is still trying to reconstruct a `handful’ of accounts at the credit union. According to Umbel, the agency has not reached a decision yet on whether it will have to liquidate the tiny community development credit union. On April 10, former D. Edward Wells Vice President William H. Zachery, Jr., wrote Lane stating, “In our opinion, we feel that the costs, versus the potential gains, (in our continued pursuit of these matters) are not efficient or effective enough to warrant the continuation of these efforts.” [email protected]