A church seeking to recover money lost in the 2010 conservatorship and liquidation of the St. Paul Croatian FCU is alleging NCUA staff told credit union employees to show SPC members with deposits larger than $250,000 how to structure them to maximize payments from the NCUSIF.
The church, Holy Love Ministry, of North Ridgeville, Ohio, has sued the agency as agent for the SPC liquidation in an attempt to recover the balance of the more than $1.5 million that the church said it had in two joint accounts with numerous signatories prior to the the liquidation. The collapse of the CU cost the insurance fund $170 million.
Part of the church's complaint against the agency is the allegation that while other depositors were called into the credit union to adjust their accounts prior to the liquidation, the Church never received a call.
Recommended For You
"Employees contacted members with balances in excess of $250,000 to restructure their accounts to maximize insurance coverage," the Church wrote in its most recent court filing. "The record shows that '(c)onservatorship staff assisted some members in restructuring [emphasis in the original] their accounts to ensure as much insurance coverage as possible. In permitting account restructures, numerous members were permitted to transfer large sums of money into other types of ownership accounts or accounts of other natural person- or business members,'" the church argued, adding an allegation that another NCUA staff member brought in for the liquidation did something similar.
"'Andy Bauman, retired NCUA examiner brought in to oversee the operations during conservatorship, instructed St. Paul's employees to contact members with account balances over $250,000 to come in and correct their accounts to ensure full coverage,'" the Church cited from the record. "Holy Love did not get a call. Without proper notice that restructuring was an option, NCUA knowingly allowed Holy Love to remain with a large sum of their accounts uninsured," the Church concluded.
- This is an update from Church Charges NCUA with Fraud
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
