BERLIN, N.H. -- Claiming that a bank employee may have taken$4.2 million in certificates of deposits from its members, GuardianAngel Credit Union has filed a class action suit to recover themoney plus accrued interest.

According to a July 1 complaint filed with the U.S. DistrictCourt in New Hampshire, the $40 million Guardian Angel deposited$99,000 with MetaBank on April 15, 2005. On April 17, 2006 andagain in April 2007, the credit union renewed the CD with the bank.On Jan. 25, 2008, MetaBank sent a letter to Guardian Angel statingthat it had "recently become aware of unauthorized certificates ofdeposit issued under its logo and brand name." The suit said MetaBank employee Charlene M. Pickhinke had "absconded with the [CU CD]deposit"

Attorneys for Guardian Angel sent letters on Feb. 26, March 21,April 4 and on April 24 to the bank demanding return of the moneyplus accrued interest, according to the suit. Randall F. Cooper, anattorney with North Conway, N.H.-based Cooper Cargill Chant, whichis representing the credit union, said the firm is currentlywaiting on a certification order to see if the court will view theclaim as a class action suit.

"They're entitled to their money. Simple," Cooper told CreditUnion Times. "There are approximately 50 members that were in thatpickle."

Cooper said Christopher Meier, an attorney with Cooper CargillChant, has been the key counsel representing the credit union butwas unavailable at press time to comment.

Meta Financial Group in Buena Vista County, Iowa. is the holdingcompany of MetaBank in Sioux Falls, S.D. "We're not able to commentbecause it is under investigation," said Lisa Binder with investorrelations at Meta Financial Group.

According to the complaint, on Feb. 11, 2008, Guardian Angellearned through Danny Reynolds, director of fraud and loss atMetaBank, that Pickhinke had indeed absconded with the deposits Asfurther proof, a May 15 SEC 10-Q filing noted that a formeremployee absconded with a number of deposits made by customers toMetaBank for certificates of deposit and that the employee took allfunds deposited relating to outstanding CDs, totaling approximately$4.2 million in face value.

The attorneys representing the credit union noted that MetaBankfailed to detect the theft allegedly committed by Pickhinke over athree-year period. Pickhinke served in a supervisory position atthe bank, the suit noted.

Guardian Angel CU is seeking financial relief on several counts,including breach of contract, negligence and vicariousliability.

"Basically, our lawyers have advised us not to discuss thematter at this time, and all I can really tell you is to refer tothe documents filed with the court, and we simply will have nofurther comment," said Gerald Dumoulin, president and treasurer ofGuardian Angel CU.

Founded in 1929, the credit union serves more than 4,800members.

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