Is the NCUA preparing to file suit against Grace Mayo, former CEO of the failed $300 million Telesis Community Credit Union?
When asked, the regulator’s media contact didn’t admit it, but didn’t deny it, either.
John Fairbanks, Public Affairs Specialist for the NCUA, said, “Whenever a large credit union goes into conservatorship or liquidation, NCUA, as part of its normal due diligence, will examine the causes of the financial problems that gave rise to the action.”
He declined to comment further on the matter.
Credit union sources in California said that the NCUA is investigating what role Mayo played in the credit union’s failure, and possibly pursuing legal action. Telesis was placed into conservatorship March 23 after struggling in recent years with business loan losses. As of 2011 year end, Telesis reported a $7 million net loss and only 4.59% net worth. The credit union was liquidated in June and its assets purchased and assumed by the $1.5 billion Premier America Credit Union, located in Chatsworth, Calif.
Legal action by the NCUA would further damage Mayo’s professional reputation. Before Telesis was hit by MBL losses, Mayo was considered a leading credit union business lender, and was an active legislative advocate for CUNA and the California Credit Union League, lobbying for increased MBL authorities for credit unions. –