John Dee Carruth, CEO of Alabama One, speaks out about his temporary suspension, lawsuits against the credit union and a short annual meeting.
Larry Morgan says he'd rather spend time with family. Gov. Bentley appoints an interim ACUA head. Attorneys in Alabama One lawsuits also speak.
The Alabama Credit Union Administration has lifted suspensions on three employees from the $608 million Alabama One Credit Union as it continues to investigate member claims of loan fraud.
The Alabama One CU, target of a fraud investigation, says the ACUA was manipulated by trial lawyers when it suspended, then reinstated, four employees.
Members claim four employees at the $608M credit union, including the CEO and COO, committed loan fraud to avoid overexposure to one member.
Industry experts say due diligence can help credit unions avoid losses like those suffered by the $620 million Alabama One Credit Union in Tuscaloosa, Ala., and the Small Business Administration, which were defrauded of more than $3 million by a businessman.
Losses like the $3 million case involving the SBA and Alabama One can be avoided, experts say.
The SBA and the $620 million Alabama One Credit Union were among the victims of check kiting and other fraudulent activities allegedly committed by Danny Ray Butler, a businessman and real estate developer.
Businessman also charged in $1.76 million hit against SBA for grocery store loan.