It may be common–and it certainly is permitted under NCUA rules–but debates are beginning to be heard among some credit union experts when it comes to credit union employees (frequently the CEO) serving on the board of directors as treasurer.
Exhibit A in the brouhaha is Ignacio Morales, CEO of the failed Borinquen Federal Credit Union, who siphoned out millions of dollars to buy real estate and cocaine. Morales was said to use his position on the board as treasurer to accept bogus documentation for the money transfers that put large amounts of the institution's assets into his personal pockets.
And so some experts grumble that whenever the CEO, or any senior executive of a credit union, serves on the board as treasurer, a position with enormous power to approve or disapprove transactions, the institution is at risk.
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