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CEO as Treasurer: A Good Idea?

It may be commonand it certainly is permitted under NCUA rulesbut debates are beginning to be heard among some credit union experts when it comes to credit union employees (frequently the CEO) serving on the board of directors as treasurer.

By Robert McGarvey | Updated on September 17, 2012

It may be common–and it certainly is permitted under NCUA rules–but debates are beginning to be heard among some credit union experts when it comes to credit union employees (frequently the CEO) serving on the board of directors as treasurer.

Exhibit A in the brouhaha is Ignacio Morales, CEO of the failed Borinquen Federal Credit Union, who siphoned out millions of dollars to buy real estate and cocaine. Morales was said to use his position on the board as treasurer to accept bogus documentation for the money transfers that put large amounts of the institution’s assets into his personal pockets.

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