The NCUA said Friday night it has assumed conservatorship of the $318 million Telesis Community Credit Union in Chatsworth, Calif., and liquidated the $17 million Saguache County Credit Union in Moffat, Colo.
News Updates:
March 26, 2012: Telesis Business Loans Swimming in Red Ink
March 26, 2012: Telesis Business Lending CUSO to Continue to Operate
March 26, 2012: Community Banking Lobby Seizes on Telesis Seizure
March 26, 2012: Telesis CEO Grace Mayo Called Innovator, Leader
March 26, 2012: Telesis May Have Been Unprepared for Niche Fluctuations
March 28, 2012: Telesis Autoland CUSO to Continue to Operate
April 2, 2012: Telesis Management Taken Over by Premier America
May 7, 2012, Telesis Reports $13.8 Million First Quarter Loss
State-chartered, federally insured Telesis Community was placed into conservatorship earlier in the day by the California Department of Financial Institutions, which then appointed the NCUA as conservator, the agency said.
Telesis Community has lost money in recent years, including more than $11 million in 2010, a year in which it paid its CEO, Grace Mayo, more than $2.1 million, according to the credit union's IRS 990 forms.
In 2011, the credit union continued to struggle from defaulted, out-of-state commercial real estate loans but experienced some improvement and a net loss of $4.6 million for the year.
Telesis Community was chartered in 1965 and serves more than 36,700 members.
It is the third federally insurance credit union conserved so far in 2012.
Meanwhile, the agency also liquidated its third credit union in 2012 on Friday, selling the shares and other assets of the conserved $17 million Saguache County CU to the $135 million Aventa CU in Colorado Springs, Colo.
The NCUA was appointed liquidating agent by the Colorado Division of Financial Services, which had determined the 3,200-member credit union was insolvent with no prospect for restoring viable operations.
Saguache County CU was chartered in 1996 and served people living in Saguache County and those who lived in Rio Grande or Alamosa counties and belonged to a cooperative. It had been conserved last July.
Also Friday evening, the NCUA said it had issued a prohibition order against Mary Carmen Hartley, a former employee of Mutual Diversified Employees Federal Credit Union, Santa Ana, Calif. The $6 million credit union was liquidated in March of 2010 and its assets were purchased by SchoolsFirst FCU.
The order bans Hartley from participating in the affairs of a federally conserved credit union and the agency said it was issued to avoid the time, cost and expense of administrative litigation.
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