An NCUA examiner who witnesses said allegedly called himself “The Liquidator” and made inappropriate statements to four female employees did not harass or retaliate against a small Ohio credit union, the agency said.

“The (NCUA Office of Inspector General) investigation could not substantiate the allegation that a credit union examiner made inappropriate comments to Commodore Perry FCU staff, and/or behaved inappropriately at the Commodore Perry FCU during the examinations in 2011 and 2012,” said NCUA Public Affairs Specialist John Fairbanks.

Fairbanks also said Wednesday that the OIG investigation did not substantiate allegations from the $32 million, 4,800-member Oak Harbor, Ohio, credit union that the agency retaliated against the complaints by lowering the credit union's CAMEL rating.

{ The story line:

CPFCU had appealed the results of its examination conducted earlier this year, saying the examiner harassed and bullied its staff, and then retaliated with a lower CAMEL score after the credit union complained to its supervisory examiner.

“I wish I could say that we are surprised that NCUA did not find itself guilty of any wrongdoing, but sadly we are not,” CPFCU President Thomas Renz said Thursday. “It seems to me that if several witnesses tell the same story about specific instances of misconduct, then that should qualify as corroboration; but, apparently the NCUA OIG – the same people that only a few weeks ago told the Senate Banking Committee that there are no problems with the appellate process - do not feel the same.”

He added, “If this does not demonstrate the need for reform, such as passage of the Examination Fairness Act, I am not certain what would.”

Renz said the Inspector General's office sent an employee to the credit union to investigate claims of inappropriate behavior and retaliation, and the investigator interviewed employees who alleged the examiner harassed and bullied them.

The credit union also provided the investigator with written statements by four female employees that were originally written at the request of CPFCU management. The employees complained about the examiner's inappropriate behavior within days of beginning his on-site examination in early 2011, Renz said.

When the same examiner returned to the credit union in 2012 and exhibited the same behavior, the employees were asked to provide written statements regarding the alleged inappropriate incidents.

Renz said he and Barr had concerns about the examiner from the very beginning of the exam, after he initially introduced himself to them as “The Liquidator.”

“He was serious,” Renz said. “He said he was known in his years in the industry as 'The Liquidator'. I clearly remember that, and took it as his point being, 'don't mess with me'.”

Renz added that the credit union still holds out hope that the NCUA's Supervisory Review Committee will rule in its favor when it hears CPFCU's appeal sometime within the next 30 days. The credit union has requested to appear in person for the appeal, but has not yet received an invitation to the NCUA's Alexandria, Va. headquarters.

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