NCUA Bans Former CEO of Pennsylvania Credit Union

Deborah N. Peters, who took over a Pennsylvania credit union that had been victimized by internal fraud, was banned Thursday by the NCUA.

Peters became the president/CEO of the Wilkes-Barre City Employees Federal Credit Union after its former President/CEO Jim Payne fatally shot himself at his home in March 2014. Five months later, the credit union’s former assistant manager, Amanda Magda, and four members —- including two police officers — were charged with conspiracy and bank fraud. All of them pleaded guilty and were sentenced for participating in a $45,000 fake loan scheme.

Peters’ CEO tenure was short-lived.

She was listed by the NCUA as the president/CEO in the first quarter and second quarter of 2014. Peters was replaced by Joseph Gimble who was listed by the NCUA as president/CEO in the third quarter of 2014.

By the end of the second quarter of 2014, Wilkes-Barre City Employees FCU posted a net income loss of nearly $180,000, and a net income loss of $228,000 in the third quarter. By the end of 2014, the credit union recorded a net income loss of $1,014,792, according to NCUA financial performance reports.

The NCUA’s prohibition order does not provide any information that explained why Peters was banned from ever participating in the affairs of a federally insured financial institution. The order also does not refer to the 2014 loan fraud scheme that was uncovered after an FBI investigation.

The prohibition order states that Peters, “without admitting or denying that said grounds exist desires to avoid the time, cost and expense of administrative litigation.”

In September 2016, the credit union changed its name to Citymark FCU, which manages $48 million in assets and serves 2,690.  At the end of last year, the credit union posted a net worth of 15%, an ROAA of 2%, and a net income gain of $898,730, according to NCUA financial performance reports.