Tammy Ewing, a former business loan officer of the $607 million Alabama One Credit Union, is at the center of a civil lawsuit that reveals new details of alleged "dishonest acts" committed by Ewing and other executives, including former President/CEO John Dee Carruth, involving a business loan that cost the credit union more than $6.5 million.
What's more, the lawsuit filed by Alabama One in federal court earlier this year against CUMIS Insurance exposes how this fallacious business loan placed the credit union under years of regulatory scrutiny, led to the termination of executives and the removal of board members, and caused additional financial losses including costly lawsuit battles, some of which are still pending in the courts.
From 2013 to 2015, Alabama One spent $4.9 million in legal fees, including the conservator expense of $609,533, according the credit union's 990 reports filed with the IRS. About half of the legal fees — $2.2 million — were spent in 2015 when the state regulator, the Alabama Credit Union Administration, took over Alabama One.
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