SPRINGFIELD, Mass.-U.S. District Court Judge Michael Ponsor denied D. Edward Wells Federal Credit Union’s motion for a `Show Cause Hearing’ and other motions, according to the institution’s attorney. Attorney Mary-Ann Lane, representing the credit union, said she is still puzzled over the decision by Judge Ponsor to deny all their motions. She said Ponsor wanted to continue with the Show Cause Hearing immediately while on April 4 Lane was expecting to simply schedule a date for the hearing. In her words, the judge was “annoyed” that they were not prepared to proceed at the time, denied all the motions, and ordered the D. Edward Wells to re-file its case on April 18. Justice Department Attorney Karen Goodwin said she had assumed as the judge did that the hearing would take place then. She said, based on the judge’s remarks in admonishing the plaintiffs and denying their motions, Ponsor was pretty well decided with NCUA since the credit union failed to provide any proof contrary to the agency’s previous documentation of poor record keeping and withholding of information from examiners. Lane said she has not decided whether to file again or not. The credit union originally filed for injunctive relief of NCUA’s conservatorship and filed a motion for a `Show Cause Hearing’ to compel NCUA to justify the conservatorship. Lane had previously denied all the allegations NCUA made against the credit union’s management and officers in an earlier filing. Among other things, NCUA alleged that officials at D. Edward Wells had made an illegal loan, not properly recorded a loan to an organization with close ties to the credit union, allowed more than $1 million in negative account balances, and kept records out of the hands of examiners. [email protected]

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

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

  • Critical CUTimes.com 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 Law.com and GlobeSt.com.

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. 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 TreasuryandRisk.com and Law.com.

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

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