Former Texans Credit Union CEO David Addison, the subject of aDec. 20 breach of fiduciary duty lawsuit filed by the NCUA, was recently involved in thepurchase of a majority ownership of a credit union investmentCUSO.

Addison, who was a founder and partner of Dallas-based Aberdeen Capital Holdings,was a player in Aberdeen's 51% stakeholder purchase of KansasCity-based credit union investment CUSO CNBS LLC, according to aNov. 2 letter posted on the CUSO's website.

CNBS touted Addison's 20-year credit union career in the letter,noting he is “among several partners” in Aberdeen.

However, CNBS President Brian Hague told Credit Union Times the lawsuit willhave no impact on CNBS.

“He is not Aberdeen,” Hague said of Addison.

The CNBS president said he has spoken with Aberdeen aboutAddison's investment position in the firm and was told the formerTCU president is a minority investor.

Hague stressed that the NCUA's suit is still just anallegation.

If the federal regulator is successful in collecting damagesfrom Addison, Hague said the NCUA could conceivably seize hisinvestment assets in Aberdeen if he still owns a stake, but Addisonis still “once removed” from any investment in CNBS.

The remaining 49% ownership of CNBS is split among 14 corporateand natural person credit unions. Hague said he has not receivedany calls from owners concerned about the NCUA's suit.

Rick Lappi, president/CEO of the $82 million Duluth TeachersCredit Union, said he's not concerned about Addison's past ties toCNBS, even though his Minnesota credit union owns a smallpercentage of the CUSO. Lappi said the NCUA suit and any potentialfallout is irrelevant, because his 8,000-member credit union'sstake in CNBS is “immaterial” on his balance sheet. Additionally,DTCU doesn't currently use the CUSO for investments, given the lowrate of return offered on securities.

“There's just not a lot of risk for us there,” Lappi said.

According to Addison's LinkedIn profile, the former Texans CEOleft Aberdeen in November 2012. It is unknown if Addison still ownsa financial stake in Aberdeen.

Attempts to reach Aberdeen were unsuccessful; the company'slisted phone number is connected to a fax machine.

Attempts to reach Addison were also unsuccessful. His home phonenumber in Frisco, Texas has been disconnected, and onlinedirectories report he has moved to Madisonville, La. TheNCUA's suit lists Addison's last known address as being in Texas,but Hague confirmed Addison moved to the New Orleans areaapproximately one year ago and had been commuting between the BigEasy and Dallas.

Aberdeen financial records list former TCU executive ToddFrerichs as an officer, along with Wyatt Henderson and Allen Jones.Frerichs' LinkedIn account says he joined Aberdeen as chieffinancial officer in November, after two and a half years as aconsultant at the Federal Reserve Bank of New York.

Frerichs was also chief financial officer of OBS FinancialServices Inc., the TCU subsidiary the NCUA fingers in its lawsuitas the cause of TCU's failure. Frerichs had been an officer atTexans CU and its subsidiaries, including OBS, from 2005 until May2010, approximately one year before the credit union was seized bythe NCUA.

Addison resigned from Texans CU in January 2009 and the NCUA conservedthe credit union. One of the NCUA's accusations in the subsequentlawsuit is that while TCU posted significant net losses duringAddison's tenure, his salary and benefits “increasedsubstantially.”

According to non-profit reporting website Guidestar.org, Addisonearned $523,236 from TCU in 2008, and was paid $534,605 in 2009despite only working there one month that year.