St. Paul Croatian Again: OIG on Taupa Lithuanian
In 2011, an NCUA examiner-in-charge reviewed a 2010 state examination of the failed $23.6 million Taupa Lithuanian Credit Union, and noted an ominous comparison.
“[M]BLs, policy updates, investment and record keeping errors, NO delinquency and NO charge offs in over 10 years, this credit union looks, sounds and acts like St. Paul Croatian waiting to happen all over again,” wrote the EIC, according to the NCUA Office of Inspector General’s material loss report, released Friday.
The $33.5 million hit to the share insurance fund was caused by former Taupa Lithuanian CEO Alex Spirikaitis overstating assets by $15.5 million, erroneously reported as cash on deposit at Corporate One Federal Credit Union in Columbus, Ohio. The NCUA’s Asset Management Assistance Center also noted issues with members share accounts and other suspicious transactions resulted in member share deposits being understated by $18 million.