SPRINGFIELD, Mass.– Carol Aranjo, former CEO of D. Edward Wells Credit Union went on trial here yesterday on charges of fraud and embezzlement. Charged in an 86-count indictment in 2006, Aranjo and her husband, Douglas Smith are accused of taking $1.3 million from the community development CU for personal expenses and real estate investments.

Aranjo also made false entries in the CU's records and obstructed the examinations of the NCUA, which placed the CU into conservatorhip in February 2003, according to Assistant U.S. Attorney Karen L. Goodwin, who is prosecuting the case. Attorney Timothy G. Watkins represents Aranjo and her husband by Mark J. Albano. Both denied any wrongdoing.

Goodwin is expected to call former board members, CU members, and representatives of the NCUA to testify. She said Aranjo and Smith withdrew money that wasn't there and took out undocumented loans and bogus mortgages, and cut cashier's checks without repayment.

In July, 2006 Mary Spruell, a friend of Aranjo's and former loan officer at the CU, pleaded guilty to charges that she received as much as $109,000 from the credit union with Aranjo's help. Spreull admitting to aiding and abetting Aranjo.

Aranjo's son Douglas L. Smith was originally indicted, but he drowned in a canoe accident in Nov. 2006. If convicted on all charges, they face up to 30 years' imprisonment, followed by five years of supervised release, and a $250,000 fine.