Judge Removes Private CU Insurer AsConservator

ROCKY RIVER, Ohio - (07/29/05) -- A state judge issued an orderTuesday removing American Share Insurance as conservator of UnitedTelephone CU and giving the credit union back to its members. Stateregulators took over United Telephone CU in 2003 and appointedAmerican Share Insurance as conservator of the $15 millioninstitution amidst allegations of financial impropriety. The yearbefore, United Telephone agreed to fix problems with self- dealing,poor investment practices, breach of duty, mismanagement and taxnoncompliance. The credit union has operated under ASIconservatorship since then. In is ruling., Franklin County JudgeGuy Reece said the state takeover was improper and ordered the OhioDepartment of Commerce to remove ASI as conservator.