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SPRINGFIELD, Mass. – Indictments related to the failure of D. Edward Wells Federal Credit Union are in the pipeline, according to filings in NCUA’s civil suit against the institution’s former officials. The Republican, a Springfield, Mass. newspaper, reported that the defendants’ lawyers are asking for a stay of the civil proceedings because they have been “advised by the United States Attorney’s Office that the return of a grand jury indictment is imminent.” NCUA is not commenting on the case and Assistant U.S. Attorney Karen L. Goodwin, who is working the case, did not return a call for comment. NCUA filed a civil suit against former D. Edward Wells CEO Carol Aranjo, a former chair of the National Federation of Community Development Credit Unions, and Supervisory Committee Chairman Michael Akers and others in February for a variety of charges including breach of fiduciary duty, fraud, negligence and conversion. According to the agency, Aranjo permitted herself, her family and her friends to overdraw accounts for hundreds to hundreds of thousands of dollars. The credit union also had taken an illegal loan and withheld paperwork from NCUA examiners. According to the report, the NCUSIF has spent $2.9 million to cover losses associated with the credit union’s insolvency.

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