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Troubled CDCU Headed by Former NFCDCU Chair Liquidated

ALEXANDRIA, Va.-D. Edward Wells Federal Credit Union of Springfield, Mass. ($4.9 million in assets) was liquidated this year after a tumultuous battle for power. More than a year ago, D. Edward Wells' management, then led by CEO Carol Aranjo, former chair of the National Federation of Community Development Credit Unions,...

By Staff Writer | Updated on December 16, 2003

ALEXANDRIA, Va.-D. Edward Wells Federal Credit Union of Springfield, Mass. ($4.9 million in assets) was liquidated this year after a tumultuous battle for power. More than a year ago, D. Edward Wells’ management, then led by CEO Carol Aranjo, former chair of the National Federation of Community Development Credit Unions, attempted to obtain a temporary restraining order against NCUA, fearing that the agency would seize the credit union. The judge denied the motion, saying he could not keep the regulator out of the credit union. NCUA’s then-Region I Director Layne Bumgardner said his office tried to work through the credit union’s problems without taking administrative action. Just prior to the credit union’s attempted restraining order, NCUA had received a letter from the NFCDCU complaining that the credit union did not return at maturity the principle of a share certificate after several requests. As NCUA delved further, they discovered D. Edward Wells’ insolvent condition and failure to comply with applicable credit union law and regulation. The credit union was placed into conservatorship Feb. 21, 2003. NCUA alleged in court documents that Aranjo had shielded the credit unions’ books from its examiners, made illegal loans, and engaged in reckless bookkeeping, among other things. D. Edward Wells’ members were added to the field of membership of $257 million asset Western Massachusetts Telephone Workers Credit Union.

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