Nearly a year after AEA Federal Credit Union was placed underNCUA conservatorship, the financial institution is in court tryingto recover some of the funds it allegedly lost in millions ofdollars of soured business loans.

U.S. Bankruptcy Court Judge James Marlar said the $229 millioncredit union in Yuma, Ariz. has the authority to access propertyassets owned by Realtor Todd Burch.

Burch filed a lawsuit in September for $34 million against AEAsaying the credit union unfairly sued him to collect on a $17million capitalized loan. Burch also alleged that when AEA stoppedhis line of credit, he was forced to declare bankruptcy.

In a separate matter, AEA is scheduled for a Dec. 16 bankruptcyhearing requesting that a petition from Frank Ruiz to discharge his debts be denied. In December 2010,Ruiz, an Arizona businessman, was charged with receivingquestionable business loans in exchange for nearly $1 million in analleged kickback scheme.

Ruiz pleaded guilty in June and is awaiting sentencing.

According to AEA's complaint, the credit union said Ruiz shouldnot be relieved of the debt he owes because he pled guilty

WilliamLiddle, a former AEA vice president of business services, wasalso charged for his involvement in the loan arrangement. Liddleworked at AEA from November 2004 to December 2009 and approved $25million in business loans during that time period, according to aU.S. Attorney's Office complaint.

The NCUA placed AEA in conservatorship on Dec. 17, 2010.