WHEELING, W.V.-NCUA's closure of Center Valley CU is leaving members frustrated and many questions unanswered-including potential fraud.
The regulator seized the $8-million institution Feb. 13 "after determining that the credit union is insolvent and has no prospects for restoring viable operations." But the 33-year old institution, which serviced employees at the Ohio Valley Medical Center, appeared to be in good financial health unlike other CUs that have been liquidated in the past. As of its 2008 Q3 5300 report, Center Valley was turning a 0.58% profit, had net worth of nearly 11% and a delinquency rate of only 1.1%.
NCUA spokeswoman Cherie Umble could not comment on how the regulator made the decision that Center Valley needed to be shut down.
A report from WTRF, the local CBS affiliate, stated members were contacting them claiming money was embezzled from the CU and that is what prompted the closure. Umbel said NCUA is reviewing all of the CU's records but could not comment further until the review is completed.
Umbel said "checks are in the mail" to members, but the President's Day holiday and the fact that Center Valley was shut down late on Feb. 13 could delay some payments to the beginning of this week. Former Center Valley CEO Bernie Metz could not be reached for comment.
