ALEXANDRIA, Va. — The National Credit Union Administration (NCUA) late Wednesday said the director of the Michigan Department of Insurance and Financial Services (DIFS) placed Clarkston Brandon Community Credit Union (CBCCU) into conservatorship and appointed NCUA as its conservator.
DIFS placed the troubled $69-million credit union into conservatorship because of "unsafe and unsound" practices uncovered at its operations.
As reported, the credit union's former chief financial officer has been arrested for allegedly embezzling some $20 million over the dozen years of his employment at CBCCU, which is based in Clarkston, Mich.
NCUA assured that while the credit union continues to conduct normal services for its members, NCUA will work to resolve issues affecting the credit union's operations.
Deposits at CBCCU will remain protected by the National Credit Union Share Insurance Fund, which is administered by NCUA and insures individual accounts up to $250,000.
According to The Michigan Credit Union League & Affiliates (MCUL), DIFS director Patrick McPharlin also assured the credit union's 9,400 members that their deposits are protected and members will continue to have uninterrupted access to their accounts.
The problems at the credit union emerged last week after regulators from DIFS uncovered some financial irregularities at its operations, and traced them to Michael LaJoice, the former chief financial officer. After his termination at the credit union, LaJoice turned himself in to Oakland County authorities, having admitted to embezzling from the credit union over the course of his employment.
According to local media reports, LaJoice, 36, has been hit with 14 counts of embezzlement-related charges.
