Three former credit union CEOs, a consumer lending specialist and a contact center representative were permanently banned from participating in the affairs of any federally insured financial institution, the NCUA said Friday.
Alan Kaufman, former president/CEO of Melrose Credit Union, may be the only credit union executive who has been banned twice by the federal agency. In August 2019, the NCUA board banned Kaufman after he pleaded not guilty to four felony counts of bribery and one felony count to defraud the United States.
By March 2021, Kaufman was convicted of two counts of corruptly accepting gratuities as an officer of a financial institution. He was sentenced to 46 months in prison and was ordered to pay $2 million in restitution. He began his sentence in October 2023 and was released from prison in February 2026, according to the Federal Bureau of Prisons.
On May 21, the NCUA sent Kaufman a letter to notify him that he has been permanently prohibited from participating in the affairs of any federally insured financial institution.
Marilyn Sullins was president/CEO of the $10.5 million Aldersgate Federal Credit Union of Marion, Ill., which was one of the few financial cooperatives that had been operating from a residential home.
Less than two weeks after the NCUA conserved the credit union on June 18, 2025, the federal regulator liquidated it on July 1.
After conducting a "limited-scope review," the NCUA's Inspector General's report found that Aldersgate lost $7,975,902 because of management's alleged fraud involving multiple loans and share accounts.
Christopher Chelette, former president/CEO of the $41.7 million Valex Federal Credit Union in Alexandria, La., from January 2020 to May 2025, allegedly embezzled more than $252,000, according to the NCUA.
He was alleged to have fraudulently used corporate credit cards, issued loans with preferential rates for family members and altered existing real estate loans outside of credit union policy.
Chelette neither admitted to nor denied the NCUA's findings. The administrative order did not disclose restitution arrangements.
From April 2020 to March 2023, Melisa Biscayno was employed as a consumer lending specialist at the $1.1 billion Seattle Metropolitan Credit Union.
According to the NCUA, she violated the credit union's guidelines to issue fraudulent vehicle loans totaling more than $395,000 and was paid a commission for each loan issued. The number of loans was not disclosed.
Biscayno neither admitted to nor denied the NCUA's findings. The administrative order did not disclose restitution arrangements.
While working as a contact center representative at the $1.1 billion Police Credit Union in San Bruno, Calif., from February 2023 to June 2024, Aaron Steele allegedly siphoned $110,000 from a dormant member's account via a series of ACH transfers and ATM withdrawals.
Leveraging his knowledge of internal alerts and reporting policies, Steele concealed the theft from the member.
Steele neither admitted to nor denied the NCUA's findings. The administrative order did not disclose restitution arrangements.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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