WHEELING, W.V. – The manager of defunct N&W Poca Division FCU and her two grown daughters were charged in a civil suit filed by NCUA last week with stealing as much as $5 million and bankrupting the tiny credit union last year.
NCUA claims the manager, Deborah Bailey and her husband and their daughters and husbands made fake deposits into their accounts and manipulated phony loans, among other things, which pushed the Bluefield, W.V., credit union over the brink and forced NCUA to liquidate the institution last October.
The fraud wiped out more than $5 million of the $7 million credit union’s assets and caused a loss of $5.5 million for the first three quarters of 2008.
Named as defendants in the suit are: Bailey and her husband Kenneth Bailey, their daughter Rebecca Poe and her husband Joey Poe, and their other daughter Pamela Mullins and her husband Christopher Mullins.
The suit claims the defendants received fictitious deposits into their share and share draft accounts, relatives and friends, as well as fictitious loans.
Lawyers for the defendants could not be reached yesterday.
N&W Poca Division FCU was chartered in 1968 to serve employees of the Norfolk and Western Railway and later added employees of American Electric Power Co. (formerly Appalachian Power Co.).
