ROCKY RIVER, Ohio-After months of investigating the alleged shady dealings of United Telephone Credit Union CEO Martin Hughes, the state regulatory body has drafted an agreement with the 83-year-old, according to Ohio’s Plain Dealer. The Ohio Commerce Department’s Division of Financial Institutions is apparently allowing Hughes to maintain his position, but with a few less perks. According to the Plain Dealer article, the state uncovered evidence that Hughes deposited two-thirds of the credit union’s assets, or $5.5 million, into a CD at Fayhe Bank, which his wife’s family owns. He also was found to have used credit union money for personal expenses; used his position as CEO to provide preferential treatment to a local judge on loan rates who expunged Hughes’ past record; and had a 15-year contract ending in 2014, which included a death benefit to his wife worth five years of his more than $400,000 salary. The report proposed the elimination of the death benefit, reducing the manger’s term to two years, and eliminating a separate credit union checkbook that Hughes controlled. As quoted in Plain Dealer, the report also discovered the board demonstrated “a considerable lack of oversight over management and its operation of the credit union, which has resulted in unsafe and unsound practices.” The board is made up of Hughes, his wife, his cousin, and two neighbors. Hughes declined to comment on the issue and the state would not provide the document and said it is illegal for anyone involved to discuss the terms of the deal. Hughes is also facing a former employer in civil court charging him with using the Union Eye Care Center’s money to pay credit union expenses. He is also being charged before the Ohio Civil Rights Commission for sexual harassment by two current and one former employee. Hughes was pardoned by President Bill Clinton during his last days in office for cooking the books at another former employer, the Communication Workers of America, to allow the groups to donate more than its legal share to political campaigns. [email protected]

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.