NCUA issues single June prohibition order

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The National Credit Union Administration issued one prohibition order in June.

NCUA said in a press release on Tuesday that Paul Aimone, a former employee of Midwest Carpenters & Millwrights Federal Credit Union in Hobart, Ind., had consented to the order. The regulator alleged that Aimone misapplied funds at the $96 million-asset credit union by taking roughly $1.5 million from a general ledger account, according to the consent order.

The consent order stated that Aimone misused nonmember funds to credit unrelated payments on delinquent loans, made credit card payments for members and “paid operational expenses for the credit union, without authorization of the owner of the funds.”

Aimone neither admitted nor denied the findings, according to the order.

The regulator also alleged that Aimone destroyed account records from Midwest Carpenters & Millwrights FCU's database and also falsely reported financial conditions in an effort to manipulate the institution's net worth ratio.

Including Aimone, NCUA has barred 27 people from working in the financial services industry this year.

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