WICHITA FALLS, Texas-NCUA claims the manager of TexDot-WF FCU looted as much as two-thirds of the assets of the tiny credit union through phony loans, forcing the federal regulator to shutter the 55-year-old credit union last month.
In a civil suit filed in federal court here last month, NCUA claims that Joanna McGee, the president of TexDot, engineered an elaborate loan scheme that, when discovered by examiners, had siphoned more than $3.1 million from the $5.2-million credit union. By the time NCUA shut it down, TexDot had only $1.8 million in assets.
NCUA alleges that McGee approved loans on dormant accounts that ended up with her; used credit union funds to pay personal expenses; gave loans to family and friends at rates lower than the normal credit union rates; paid family and friends' credit card bills and took cash for both herself and friends and family.
The credit union regulator claims that McGee cooked up a variety of schemes to hide the theft from the credit union board of directors and from examiners.
The scheme caused the credit union to report an astounding $3.4-million loss at mid-year on what was by then just $1.9 million in assets. NCUA is asking the court for $3.1 million in damages from McGee.
On Oct. 3, NCUA took over the credit union failure and assigned its member accounts to Postel Family CU, also in Wichita Falls.
TexDot WF was chartered in 1953 to serve employees of the Texas Department of Transportation.
McGee could not be reached for comment.
