A jury is currently hearing testimony in the case involvingWilliam Liddle, former lending officer at AEA Federal Credit Union,who was allegedly involved in a loan kickback scheme.

The trial is taking place in Phoenix this week with the prosecutioncalling its first witness to testify against Liddle, according tomedia reports.

In December 2010, AEA confirmed that an 11-month federalinvestigation revealed that Liddle, a former vice president ofbusiness services at the credit union in Yuma, Ariz., was allegedlyone of the persons behind the approval of business loans in anapparent $1 million kickback scheme.

During his time at the credit union, Liddle approved more than$25 million in business loans, according to an indictment from aPhoenix federal grand jury. Liddle, along with his wife Rhonda andFrank Ruiz, an Arizona businessman, were arrestedin December 2010 for their roles in approving questionable AEAbusiness loans in exchange for nearly $1 million, according to theArizona Office of the United States Attorney.

Ruiz used the loans to fund his businesses, many of which arenow bankrupt, according to the district attorney.

The Liddles were charged with 68 counts of money laundering andvarious other types of fraud. Ruiz pled guilty last June to severalsimilar counts. According to media reports, Ruiz is scheduled totestify against Liddle.

Liddle worked at AEA from November 2004 to December 2009.

The NCUA placed AEA in conservatorship in December 2010.