Capital Briefs: NCUA Upholds Ban on Credit Union Exec

The Supreme Court on Nov. 27 declined to hear a petition by a credit union executive who was banned from working at a federally insured financial institution.

John R. Doolittle, former chief executive of Bay Gulf Federal Credit Union, has been trying since 1991 to overturn a National Credit Union Administration decision charging him with manipulating financial records and failing to prevent illegal commercial loans from being made.

"Mr. Doolittle demonstrated he was not fit to run a financial institution," NCUA General Counsel Robert M. Fenner said in a release.

The NCUA required Mr. Doolittle to pay $42,857 in restitution to the credit union, which fired him in 1990. Mr. Doolittle claimed that the NCUA acted improperly, and in June 1993 the 11th U.S. circuit court of appeals in Atlanta vacated the agency's ruling and remanded the case to the agency for reconsideration.

The NCUA reinstated its decision in January 1994, and the 11th circuit upheld it in March 1995 without comment.