Court records and sources familiar with an unfolding situation at Alabama One Credit Union said the NCUSIF and NCUA may soon face a regulatory failure.
Plaintiff claims widespread flouting of lending rules and regulations, also admits to unprofessional behavior.
John Dee Carruth says Alabama One employees plead the fifth amendment when subpoenaed to testify.
Alabama business owner receives three year federal prison sentence for kiting checks at his Alabama One CU business account.
John Dee Carruth, CEO of Alabama One, speaks out about his temporary suspension, lawsuits against the credit union and a short annual meeting.
The Alabama One CU, target of a fraud investigation, says the ACUA was manipulated by trial lawyers when it suspended, then reinstated, four employees.
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.