Fraud Claim Against NCUA in St. Paul Croatian Fallout
An Ohio church has alleged the NCUA staff committed fraud when they did not allow it to withdraw its funds from the failing St. Paul Croatian Federal Credit Union before the credit union was placed into conservatorship.
The credit union was placed into conservatorship in April 2010 and numerous lawsuits and criminal indictments have followed in its wake. The collapse cost the NCUSIF $170 million.
Paige’s refusal to more withdrawals was not a spur-of-the-moment decision, the church claimed. “Rather, NCUA agents discussed the matter beforehand, once again giving evidence that the agents knew of the impending conservatorship,” the church added.
Further, the church alleged that Andy Bauman, a retired NCUA examiner that the agency had brought in to oversee operations during the conservatorship, told the credit union's employees to contact members with balances of over $250,000 so they could correct their accounts to better their chances of getting all their money back.