NCUA Bans One-Time CU Figure

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ALEXANDRIA, Va. – NCUA said yesterday it barred Richard Koenig, the well-known former president of Prime Financial CU when it was taken over by state regulators in March 2009, from the credit union industry.

The terms of the administrative order issued by NCUA were not disclosed because it was agreed to as a consent, but sources indicate the charges involved the credit union’s recordkeeping, which masked big losses at the one-time $200 million credit union, precipitating the rare conservatorship by state regulators. The losses, $9.6 million for 2009, scotched a proposed merger of the Cudahy, Wis., credit union with Guardian CU.

State regulators released Prime Financial from conservatorship this May after the now-$145 million credit union broke back into the black with a $270,000 net for the first quarter.

NCUA also said yesterday it barred Tiffany Churchill, a former employee at Maine Family FCU, for embezzling $15,000 from the Lewiston, Maine, credit union; and Nathan Cranney, a former employee of Deseret First FCU in Utah.

Also barred was Lisa Dodson, a former employee at Cooperative Teachers CU, for stealing $70,000 from the Tyler, Texas, credit union.

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