WilliamLiddle, the former lending officer at AEA Federal Credit Union,has been prohibited from participating in the affairs of anyfederally insured financial institution, the NCUA saidThursday.

Liddle, a former employee of the $231 million AEA FCU in Yuma,Ariz., was convicted in 2012 of conspiracy, fraud, wire fraud andtransactional money laundering. He was sentenced to 15 years inprison, five years of supervised release and ordered to payrestitution in the amount of more than $25 million.

Liddle's involvement in a loan kickback scheme was among themain culprits that led to significant losses in AEA FCU's loanportfolio. The NCUA placed the credit union in conservatorship in December 2010.

An 11-month federal investigation conducted by the FBI and theU.S. Attorney's Office revealed that Liddle approved more than $25million in fraudulent business loans.

Liddle, along with his wife, Rhonda, and Frank Ruiz, an Arizona businessman, were arrested in December2010 for their roles in approving questionable AEA business loansin exchange for nearly $1 million, according to U.S. Attorney'sOffice in Arizona.

Ruiz used the loans to fund his businesses, many of which arenow bankrupt. The three persons have since filed personalbankruptcy.

AEA said Liddle was hired in November 2004 to develop and managea business services program based on his formal education andprofessional expertise in commercial lending and internationalbusiness.

Liddle resigned from his position in December of 2009 to managehis business, Desert Capital Advisors LLC, AEA FCU said at the timeof the investigation.

Despite its financial troubles, AEA FCU recently posted positive financials for 2012, according to the NCUA. Totalassets at the end of the fourth quarter stood at $231 million, andthe net worth ratio improved by 137 basis points from year-end2011, ending the fourth quarter at 4.02%, the NCUA said.