Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ALEXANDRIA, Va.-D. Edward Wells Federal Credit Union of Springfield, Mass. ($4.9 million in assets) was liquidated this year after a tumultuous battle for power. More than a year ago, D. Edward Wells’ management, then led by CEO Carol Aranjo, former chair of the National Federation of Community Development Credit Unions, attempted to obtain a temporary restraining order against NCUA, fearing that the agency would seize the credit union. The judge denied the motion, saying he could not keep the regulator out of the credit union. NCUA’s then-Region I Director Layne Bumgardner said his office tried to work through the credit union’s problems without taking administrative action. Just prior to the credit union’s attempted restraining order, NCUA had received a letter from the NFCDCU complaining that the credit union did not return at maturity the principle of a share certificate after several requests. As NCUA delved further, they discovered D. Edward Wells’ insolvent condition and failure to comply with applicable credit union law and regulation. The credit union was placed into conservatorship Feb. 21, 2003. NCUA alleged in court documents that Aranjo had shielded the credit unions’ books from its examiners, made illegal loans, and engaged in reckless bookkeeping, among other things. D. Edward Wells’ members were added to the field of membership of $257 million asset Western Massachusetts Telephone Workers Credit Union.

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?


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
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.