KENSINGTON, Md. — Lawrence Hart, the chief compliance officer for the $319 million Lafayette Federal Credit Union, has resigned alleging the credit union was untruthful with NCUA examiners, was not taking action on his concerns about potential Bank Secrecy Act violations, and for what he described as the wrongful termination of Howard Mann, a former internal auditor with the credit union.
Hart alleged that the credit union's senior executives made “less than totally accurate” statements to the NCUA during the NCUA's April on-site audit.
Hart also cited what he claimed was Lafayette's failure to implement some requirements of BSA, and “disregard” of the Customer Identification Program and inquiries to the Office of Foreign Asset Control's data systems.
Hart cited the “wrongful termination” of Mann and said Lafayette took “retaliatory actions” against Mann, a former NCUA examiner who was hired by the CU as part of its audit and compliance effort.
Hart noted in his letter that he had personally developed many of the systems that Lafayette uses for compliance with federal reporting regulations and offered to remain available to the credit union to train a replacement.
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