One of the former managers of North Star Business Services LLC has said charges in a suit recently filed by the NCUA for alleged fraudulent payment collection are false.
Mark Moody, one of the managers of the defunct NSBS, told Credit Union Times his side of the story behind a Nov. 8 suit brought by the NCUA alleging that NSBS continued to collect payments on 18 commercial loans owned by Ensign Federal Credit Union, which did business with the CUSO and was liquidated in November 2009 by the regulator.
Moody said the day after Ensign shut down, the NCUA contacted NSBS and told it to continue to service and collect payments on the loans in question. In February, he said he received another letter from the NCUA saying the CUSO's services were no longer needed. Moody said he then contacted an attorney and in March sent a letter to the NCUA seeking a payment of $115,500 from the agency for management and administrative fees.
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