The FBI in Minneapolis is investigating the St. Francis Campus Employees Credit Union of Little Falls, Minn., which the Minnesota Department of Commerce closed on Friday.
“We received indication that there were some irregularities at the credit union,” said Kyle A. Loven, chief division counsel for the FBI office in Minneapolis. “The FBI along with the Little Falls Police Department looked into the matter and an investigation was opened thereafter. The NCUA is involved as well.”
The FBI investigation was launched Jan. 23, Loven said.
“We are going to look into the facts, and the facts will determine what happens with respect to the investigation,” he said.
Read more: Fraud and Credit Unions
The Minnesota Department of Commerce liquidated St. Francis Campus Employees CU and discontinued its operations after conducting an examination and determining the credit union was insolvent with no prospect for restoring viable operations on its own. The state regulator then appointed the NCUA as the receiver and liquidating agent of the $51 million cooperative.
The credit union's most recent financial reports showed no sign of financial distress. As of Dec. 31, 2013, St. Francis Campus Employees CU reported 10.84% net worth, 0.29% loan delinquencies and no charge offs. The credit union reported a $482,016 net profit for 2013.
According to its fourth quarter call report, St. Francis Campus Employees CU had six full-time employees, led by Manager/CEO Margurite M. Cofell, and two part-time employees.
Chartered in 1963, St. Francis Campus Employees Credit Union served employees of the St. Francis Campus, as owned by the Franciscan Sisters, their relatives and employees of the credit union.
St. Francis Campus Employees CU is the second federally insured credit union liquidation in 2014, following the Jan. 21 liquidation of the Bagumbayan Credit Union of Chicago, which had just $55,000 in assets.
The $759 million Central Minnesota Credit Union of Melrose, Minn., assumed St. Francis Campus Employees' 3,400 members, assets, shares and loans.
Central Minnesota CU is a federally insured, state-chartered credit union with 52,000 members, according to its most recent Call Report.
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