Loan Fraud Claims Spark Lawsuits, C-Suite Suspensions at Alabama One
Under legal pressure, the Alabama Credit Union Administration on Thursday lifted suspensions on three employees from the $608 million Alabama One Credit Union as it continues to investigate member claims of loan fraud.
Larry Morgan, administrator of the ACUA, told CU Times an investigation is underway at the state-chartered Alabama One, but he emphasized the Tuscaloosa-based institution remains open.
The credit union still faces separate civil lawsuits filed by numerous members who allege that Alabama One encouraged them to take out loans in their name and then loan the money to Butler, according to court documents.
One civil suit, filed by six Alabama One members, alleges forged signatures were used to funnel money to Butler.