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ALEXANDRIA, Va.-NCUA has announced it has begun the process of verifying the accuracy of accounting records at D. Edward Wells Federal Credit Union, which was placed into conservatorship last month. The agency filed court papers in the U.S. District Court in Springfield detailing its reasons for placing the troublesome credit union into conservatorship following the credit union’s filing with the federal court for relief. Credit Union Times reported last summer that the credit union’s CEO, Carol Aranjo, had filed for a temporary restraining order against NCUA to keep the agency from seizing the less than $5 million credit union. NCUA examiners had reported incomplete sharing of credit union data during one of the numerous exams D. Edward Wells experienced last year. Members with funds or loans at D. Edward Wells who do not receive a verification letter have been asked to contact NCUA at 4807 Spicewood Springs Road, Suite 5100, Austin, Texas 78759 or (877) 715-0775 toll free (extension 0) or (512) 231-7900. NCUA Region I Director Layne Bumgardner said that accounts are not verified in every conservatorship, but that it is not unusual. He said the problems uncovered at the credit union warranted the verification. While Bumgardner said the agency has been finding liabilities not on the books, he is not in a position to say if the operational and record keeping problems have been the result of fraud or poor management. According to NCUA, the credit union had been keeping these liabilities from NCUA, its outside auditor and its members. When D. Edward Wells members receive the verification statement, they are advised to review it closely and verify its accuracy by return mail. Members must be able to back up their claims with documentation. At press time, there were reports of members picketing outside of the credit union, protesting NCUA’s taking over the credit union.

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