SPRINGFIELD, Mass. — The federal grand jury trial of former D.Edward Wells president/CEO Carol Aranjo and her husband, AlphonsoSmith for conspiracy, tax evasion and embezzlement that led to theliquidation of the CU continued here last week.

According to a report in The Republican, former CU Board MemberWilliam H. Zachery Jr. told the jury that loan files were missingwhen he conducted an audit. Among the missing files were Aranjo'smortgage, loan documents in her two sons' names, and a loan to aformer fraternity brother of board member Michael Akers, Zacherytestified. Others loan files were incomplete, lacking applicationforms and other paperwork, he said.

An NCUA official testified that Aranjo had a $150,000 negativebalance in her accounts and a $30,000 shortfall in her husband's by2000, the same year the credit union suffered a $225,000 operatingloss, The Republican stated.