FBI Probes Failed CU in Minn.
The FBI in Minneapolis is investigating the $51 million St. Francis Campus Employees Credit Union in Little Falls, Minn., which state regulators on Feb. 14 closed and appointed the NCUA as receiver and liquidating agent.
“We received indication that there were some irregularities at the credit union,” said Kyle A. Loven, chief division counsel for the FBI office in Minneapolis. “The FBI along with the Little Falls Police Department looked into the matter and an investigation was opened thereafter. The NCUA is involved as well.”
The FBI investigation was launched Jan. 23, said Loven.
“We are going to look into the facts, and the facts will determine what happens with respect to the investigation,” he said.
The Minnesota Department of Commerce liquidated St. Francis Campus Employees CU and discontinued its operations after conducting an examination and determining the credit union was insolvent.
The credit union's financial reports showed no sign of financial distress. As of Dec. 31, 2013, St. Francis Campus Employees CU reported 10.84% net worth, 0.29% loan delinquencies and no charge offs. The credit union reported a $482,016 net profit for 2013. The credit union reported having six full-time employees, led by Manager/CEO Margurite M. Cofell, and two part-time employees.
Chartered in 1963, the loyees Credit Union served employees of the St. Francis Campus, as owned by the Franciscan Sisters, their relatives and employees of the credit union. The $759 million, 52,000-member Central Minnesota Credit Union of Melrose, Minn., has assumed St. Francis Campus Employees’ 3,400 members, assets, shares and loans.