AEA Suit Tossed Out
In the latest update involving AEA Federal Credit Union, a judge has rejected claims from a real estate developer that the NCUA-conserved cooperative is still responsible for funding his projects.
Todd Burch was seeking $34 million against the Yuma, Ariz.-based AEA for alleged breach of contract, claiming that the credit union severed his line of credit and filed suit against him to collect on his loan, the Yuma Sun reported in a March 15 article. Burch’s debt is an estimated $17.5 million.
Prosecutors said Ruiz should receive a sentence of up to one year because he testified against William Liddle, the AEA loan officer, who recently pleaded guilty to more than 50 counts of fraud for his role in the $50 million kickback scheme.
U.S. District Court Judge Susan Bolton postponed Ruiz’ sentencing until April 9 to consider new evidence on how large of a role he played in AEA’s financial downfall.
John Zimmerman, NCUA public affairs specialist, said the agency will not comment on Ruiz’s possible sentence.
AEA has been operating under NCUA conservatorship since December 2010.