Feds Probe Ailing Arizona CU

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YUMA, Ariz. – The FBI has launched a criminal probe of potential fraud involving member business loans that have driven AEA FCU to the verge of insolvency, sources confirmed to the Credit Union Journal.

The MBL losses have driven AEA, which was chartered by the Arizona Education Association, near the brink, with  $25.9 million loss for 2009 and a $4.7 million loss for the first three quarter of 2010, pushing down its net worth ratio to just 2%.
The declining financials forced the retirement of the credit union’s long-time CEO Ken Bredemeyer in April.

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