The $5.4 million First Delta Federal Credit Union is striving to regain its financial health after an embezzling staff member stole more than $1 million over a nine year span.
First Delta Federal Credit Union, headquartered in Marks, Mississippi, built a reputation on strong community development work in and around its predominantly rural field of membership. One of its founding board members has been recognized for her achievements by the National Federation of Community Development Credit Unions and its past CEO and board member, Robert Jackson, sits on the National Federation's board.
But that legacy of hard work hit a snag after one of the credit union's officers was found to have been embezzling money from the CU over a nine year period. Now, First Delta is struggling to resume its growth and rebuild its sense of community, including facing heightened regulatory scrutiny after some of its secondary capital deposits were not allowed to be used as part of the CU's capital ratio, according to Jackson.
"Obviously everyone wishes this had not happened," Jackson said. "The employee involved was a long time co-worker of mine and many other people. We felt we knew her and trusted her. Now her actions have made it that much harder for us to push on and keep going," he added.
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