DIFS Places Clarkston Brandon Community CU into NCUA Conservatorship
Michigan’s Department of Insurance and Financial Services (DIFS) has placed Clarkston Brandon Community Credit Union (CBCCU) into conservatorship and appointed NCUA as the conservator, effective immediately.
The Detroit News reported last week that a CBCCU employee had admitted to embezzling more than $20 million from the credit union over a 12-year period.
DIFS Director Patrick McPharlin emphasized in a statement that the deposits of all of the credit union’s 9,400 members are protected and members will continue to have uninterrupted access to their accounts.
“All Michigan state-chartered credit unions are insured by the NCUA for up to $250,000 per depositor and sometimes more,” reminded McPharlin. “CBCCU will continue regular hours under management of NCUA.”
The regulator will take control of the credit union in order to ensure stability and safety and soundness, and both DIFS and NCUA will partner to address any issues related to the credit union’s operations during the conservatorship process.
Dave Adams, president and CEO of the Michigan Credit Union League (MCUL) said last week that while fraud and embezzlement are rare occasions at credit unions, they do sometimes happen—but there are procedures and policies in place to protect against those incidents.
“That’s why credit unions and banks are closely regulated, receive annual independent audits, and carry insurance coverage for these incidents,” he said.
To read more from Adams in response to the CBCCU news, click here.Go to main navigation