ALEXANDRIA, VA.- The NCUA has issued a prohibition order against William Bruce Kay, former President/CEO of CU Master Insurance Services Inc., the credit union service organization of the Hughes Aircraft Employees Federal Credit Union in Manhatten Beach, California. Kay pleaded nolo contendre (no contest) earlier this month to charges of grand theft and was sentenced to serve one day in prison, three years probation and 300 hours of community service. Upon completion of his punishment, he may not serve in any capacity for a federally chartered financial institution without prior permission. Credit Union Times learned from sources that Kay was terminated by the CUSO's board of directors in December, 1998 after investigations turned up questionable transactions and expenses in CUSO operations controlled by him. Restitution was also part of the plea arrangement. Sources say the cost of the activity was minimal, and together with a satisfied bond claim, there was no loss to the CUSO or the credit union. -
caburger@cutimes.com
