NCUA official seal. (Source: NCUA)
The NCUA banned a former CFO Tuesday for "misapplying" $1.5 million from the $96 million Midwest Carpenters & Millwrights Federal Credit Union in Hobart, Ind.
The NCUA's sole prohibition order for June, which bans Paul Aimone from participating in the affairs of any federally insured financial institution, alleged that he removed funds from the credit union's general ledger account without authorization.
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Aimone allegedly used nonmember funds to "credit unrelated loan payments on delinquent loans" and make credit card payments for members. He also used the funds to pay MCMFCU's operational expenses without authorization, according to the order.
To conceal his actions, the former CFO deleted and destroyed account records from the MCMFCU's database.
What's more, he falsely reported the financial condition of the credit union by allegedly manipulating its regulatory net worth ratio, according to the order.
At the end of the first quarter, MCMFCU's net worth was 6.77%, down from 7.01% at the end of last year's first quarter, according to NCUA financial performance reports.
At the end of 2018, the credit union posted a net income loss of $1,678,674 and a net worth of 7.12%, down from its net worth of 8.74% in Dec. 2017.
In 2019, MCMFCU recorded an annual net income gain of $202,478 and a net worth of 7.23%, according to NCUA financial performance reports.
The prohibition order did not state whether Aimone made restitution and the NCUA declined to comment.
MCMFCU did not respond to CU Times' request for comment.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
