NCUA issues November prohibitions

The National Credit Union Administration issued one prohibition notice and one prohibition order in November.

As a result of these actions, the agency said on Friday, the named individuals are prohibited from participating in the affairs of any federally insured financial institution.

The prohibition notice was issued against Michelle Cain, a former employee of Business and Industrial Federal Credit Union, $38 million-asset institution based in Columbus, Ind., who pleaded guilty to the charge of theft.

Cain was sentenced to one year in prison, two years’ supervised release and ordered to pay $466,122.27 in restitution.

Mitchell Reiver, former general counsel at Melrose Credit Union in Briarwood, New York, agreed and consented to the issuance of a prohibition order, and agreed to comply with all of its terms to settle and resolve the NCUA board’s claims against him. NCUA officials declined to provide more information about the regulator's claims against Reiver.

As reported, in August 2018, NCUA liquidated Melrose CU, with $7.3 billion-asset Teachers FCU in Hauppauge, N.Y. assuming its members and shares.

Prohibition notices are used for those who have been convicted of a crime of dishonesty, such as theft or embezzlement, while prohibition orders are issued when NCUA exercises its own authority to ban a person.