ST. CLAIR SHORES, Mich. – State regulators yesterday barred the CEO of defunct Shores Area CU from working in the credit union industry for his management lapses before the troubled $12-million credit union was merged earlier this year into Unity CU.
The Office of Financial and Insurance Regulation concluded that David Russell engaged in unsafe and unsound practices, including improper loan administration, inaccurate financial reporting, violation of the credit union’s own policies and inadequate planning, which resulted in a financial loss for the institution.
“The Michigan Credit Union Act gives OFIR the authority to protect consumers from unscrupulous or unqualified individuals by preventing them from ever working in the industry again,” OFIR Commissioner Kevin Clinton said.
Shores Area reported a loss of $223,000 for 2010, and of $188,000 for the first quarter of 2011, as its net worth fell below 3%, prompting the merger into Unity, based in nearby Warren, Mich.
