PHOENIX – A Yuma real estate developer who pleaded guilty to the biggest member business loan fraud ever on Monday was sentenced to 24 months in prison in exchange for his testimony helping convict the former MBLs chief at AEA FCU.
The sentence for Frank Ruiz was less than the 10-years sought by the NCUA conservator for the one-time $410-million credit union, but the leniency was based on the fact Ruiz has no prior criminal history and he was instrumental in the prosecution of William Liddle, the credit union’s vice president of business lending who was convicted of 54 counts of fraud and money laundering in February.
Ruiz pleaded guilty to one count of conspiracy and one count of money laundering, charges which could have meant penalties of up to 15 years in prison and a maximum of $500,000 in fines. However, the government recommended a one-year sentence because of Ruiz’s assistance in the government’s prosecution of codefendants William Liddle and his wife, Rhonda Liddle, who was convicted of laundering $1 million of bribes Ruiz paid Liddle to approve almost $60 million of MBLs that eventually went sour.
William Liddle is scheduled to be sentenced in May.
NCUA has operated AEA FCU, the credit union for the Arizona Education Association, since December 2010. The credit union had negative $13 million of capital at year-end and is only operating because of an emergency $20 million loan from NCUA.
