PITTSBURGH – CUNA Mutual Group has filed suit against the former CEO of a small Pennsylvania credit union claiming the manager charged almost $265,000 for unauthorized personal expenses to the credit union.
CUNA Mutual’s CUMIS Insurance Society unit eventually reimbursed the credit union for $223,000 of the unauthorized expenses under its fidelity bond.
Gerald Jackson was president of BVA FCU in Belle Vernon, Penn., from January 2009 until November 2010, when he was put on indefinite leave after an NCUA examiner discovered discrepancies in the credit union’s spending records, according to a suit filed last week by CUMIS.
The NCUA examiner discovered that during his two years as head of the $18-million credit union Jackson had charged as much as $265,000 in personal expenses. According to the CUMIS suit, the charges included: $40,000 to Lowe’s home improvement store for personal expenses; $3,600 for membership in the Mon Valley Country Club; $14,025 for construction materials; $42,605 for laborers to do work on his home; $5,040 for cruise tickets; $7,700 for a boat for his personal use and $800 he used to reimburse employees for political contributions to favored politicians. “At no point did Mr. Jackson monetarily reimburse BVA for any of the aforementioned goods, services, or disbursements,” states the CUMIS suit.
CUMIS declined to comment on the new suit. A lawyer for Jackson did not return a phone call seeking comment.
