Wisconsin regulators said this week that they had shut down a small credit union that is the subject of an embezzlement investigation and declared it insolvent.

A spokeswoman for the Wisconsin Department of Financial Institutions, which has not yet released an administrative ruling on the credit union's closure, confirmed Monday that regulators took control of the Kettle Moraine Employees Credit Union in Sheboygan on Dec. 23 and ordered it to liquidate on Dec. 28. This was the fourth credit union in the nation closed by regulators last year.

The National Credit Union Administration has responsibility for distributing to Kettle Moraine's 260 members the proceeds from liquidating its $387,665 of assets.

The credit union, which serves employees of the Kettle Moraine Correctional Institution, has been under investigation by the Sheboygan County Sheriff's Department and the Federal Bureau of Investigation for more than two months, said Capt. David Adams of the sheriff's department.

Working with state and federal regulators, FBI and sheriff's investigators have been auditing the credit union's books and have found a "substantial amount" of funds is missing, Mr. Adams said. The authorities expect to conclude their investigation within a month, he said.

- Craig Woker

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