The NCUA issued prohibition orders Thursday to a group that include three known industry names. As with most NCUA prohibitions, they are banned from participating in the affairs of any federally insured financial institution.
William Robert Liddle, a former lending officer at the $231 million AEA FCU in Yuma, Ariz., was convicted of conspiracy, fraud, wire fraud and transactional money laundering. Liddle was sentenced to 15 years in prison, five years of supervised release and ordered to pay restitution in the amount of $25,389,425.
Liddle’s involvement in a loan kickback scheme that produced more than $25 million worth of fraudulent business loans contributed to significant losses in the credit union’s loan portfolio. The NCUA placed AEA into conservatorship in December 2010.
Paul A. Amato, former vice president of finance for Medical Area FCU in Brookline, Mass., consented to the issuance of a prohibition order to avoid the time, cost and expense of administrative litigation. Amato said he is currently employed at the Lombard, Ill.-based data and strategic planning firm Raddon Financial Group.
The $74 million Medical Area FCU merged with the $782 million RTNFCU last year. According to RTN’s website, the credit unions merged data and systems effective Dec. 2, 2012.
Joseph J. Cicione III, former CEO of Alliance Blackstone Valley Federal Credit Union in Pawtucket, R.I., consented to the issuance of a prohibition order to avoid the time, cost and expense of administrative litigation. The $42 Alliance Blackstone received NCUA approval to merge with the $45.5 million Blackstone River FCU in June 2011. However, due to losses at Alliance Blackstone, that merger did not occur.
According to NCUA financial performance reports, as of Dec. 31, Alliance Blackstone was undercapitalized with 6.80% net worth, but has sharply improved its financial position from one year prior, when it closed out 2011 with only 4.37% net worth.