PHOENIX – A federal judge on Friday denied prosecutors’ request to jail William Liddle while he awaits sentencing, after Liddle, the former head of member business loans at AEA FCU, was convicted of 54 counts in an MBL fraud that sunk the one-time $410-million Yuma credit union.
U.S. District Court Judge Susan Bolton denied a prosecution request that Liddle be taken into custody until sentencing, noting his wife of 25 years is here, as are the couple’s two daughters and his wife’s extended family.
“They are a close-knit family,” Bolton said. “It is unthinkable he would flee his family.” Besides, she said, Liddle lacks the financial resources to leave the country and his passport was taken.
Liddle’s wife, Rhonda Liddle, also was convicted of 36 counts of conspiracy and money laundering in the case, in which prosecutors said the former MBLs chief approved tens of millions of dollars in loans that eventually went sour in exchange for more than $1 million in bribes. The MBLs cost the credit union an estimated $58 million in losses and forced NCUA to take it under conservatorship in November 2010.
Sentencing for the Liddles has been set for May 21.
NCUA reported last month that AEA, formerly the credit union for the Arizona Education Association, now has negative net worth of $14 million and only remains afloat because of a $20-million emergency loan.
William Liddle was the vice president of business lending for AEA. Prosecutors say he conspired with Yuma businessman Frank Ruiz to get suspicious business loans approved in exchange for almost $1 million in kickbacks, which included a house, two cars and cash.
Ruiz pleaded guilty in a deal with prosecutors and testified against the Liddles. Ruiz is scheduled to be sentenced next month.
