The NCUA intends to liquidate the conserved $2.6 million People Trust Community Credit Union on Friday, according to a new emergency court motion filed on Wednesday that asked an Arkansas federal judge to issue a temporary restraining order to block the credit union's closure.
Arlo Washington, founder and former CEO of the conserved People Trust Community Federal Credit Union, initially filed an emergency motion on Tuesday to prevent the federal regulator from closing the credit union but inadvertently omitted the specific liquidation date. He was fired when the NCUA conserved the credit union, based in North Little Rock, on Jan. 16 for unsafe and unsound practices.
On Thursday, Washington also filed a separate emergency supplementary notice regarding newly discovered facts. He claimed that "actions taken during conservatorship include the execution of financial instruments bearing (his) name and/or signature without (his) authorization."
Washington claimed that using his name and/or signature in financial instruments without authorization "creates direct and immediate harm, including potential legal, financial and reputational consequences."
"This ongoing conduct further underscores the urgency of Plaintiff's (Washington) request for immediate injunctive relief," Washington stated. "Additionally, while Defendant (NCUA) asserts that Plaintiff lacks standing, the use of Plaintiff's identity or authority in financial transactions demonstrates a direct and personal connection to the conduct at issue."
Washington and the NCUA did not respond to CU Times' requests for comment.
The legal dispute between Washington and the NCUA began less than two weeks after People Trust Community was conserved. On Jan. 23, Washington filed an application for relief from conservatorship in federal court. In February, the federal regulator moved to dismiss the application.
By March, Washington filed an amended complaint and the NCUA also moved to dismiss it.
As of Thursday afternoon, however, the federal docket showed U.S. District Court Judge Brian S. Miller has not held any hearings or ruled on any of the motions that have been filed.
READ MORE: Arlo Washington's First Emergency Filing and Second Emergency Filing.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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