St. Paul Croatian Claim Denied by CUMIS
Nearly a year after the NCUA filed a proof of loss claim to recover alleged monetary damages connected to the collapse of St. Paul Croatian FCU, the CUMIS Insurance Society has denied it.
According to the Aug. 18 complaint for declaratory judgment filed by NCUA attorneys, CUMIS acknowledged the proof of loss claim that the regulator filed Oct. 8, 2010 but has not paid on it citing alleged misrepresentation and concealment of material facts.
St. Paul’s financial troubles had been brewing since at least December 2009. In January 2010, representatives from the FBI and the IRS met with NCUA staff concerned there was alleged criminal activity occurring at the CU.
After an investigation, NCUA placed the East Lake, Ohio-based St. Paul in conservatorship on April 23, 2010. Founded in 1943, it served nearly 5,400 members and had approximately $238.8 million in assets.