The FBI in Minneapolis is investigating the $51 million St.Francis Campus Employees Credit Union in Little Falls, Minn., whichstate regulators on Feb. 14 closed and appointed the NCUA asreceiver and liquidating agent.

“We received indication that there were some irregularities atthe credit union,” said Kyle A. Loven, chief division counsel forthe FBI office in Minneapolis. “The FBI along with the Little FallsPolice Department looked into the matter and an investigation wasopened 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 willdetermine what happens with respect to the investigation,” hesaid.

The Minnesota Department of Commerce liquidated St. FrancisCampus Employees CU and discontinued its operations afterconducting an examination and determining the credit union wasinsolvent.

The credit union's financial reports showed no sign of financialdistress. As of Dec. 31, 2013, St. Francis Campus Employees CUreported 10.84% net worth, 0.29% loan delinquencies and no chargeoffs. The credit union reported a $482,016 net profit for 2013. Thecredit union reported having six full-time employees, led byManager/CEO Margurite M. Cofell, and two part-time employees.

Chartered in 1963, the loyees Credit Union served employees ofthe St. Francis Campus, as owned by the Franciscan Sisters, theirrelatives and employees of the credit union. The $759 million,52,000-member Central Minnesota Credit Union of Melrose, Minn., hasassumed St. Francis Campus Employees’ 3,400 members, assets, sharesand loans.