Former CEO to NCUA: ‘I will not be a scapegoat’

Alan Kaufman issues a statement regarding the NCUA's allegations that he violated laws and his fiduciary duties.

NCUA headquarters

In a new statement to CU Times, Alan S. Kaufman said he will vigorously defend himself against what he described as misleading charges made by the NCUA against him.

“I will not be a scapegoat for the regulatory failures and technological disruptions that have destroyed the taxi medallion industry and those who financed it,” Kaufman wrote in a statement Friday. “I worked for Melrose for over 30 years as did my father and grandfather. My family and the loyal board of directors have always done business with integrity for the best interest of the Melrose members.”

His comment, sent in an email to CU Times on Friday, is in reaction to a rarely used NCUA authority that is seeking a prohibition order against Kaufman, which is requesting that he be ordered to pay restitution of at least $3.5 million and a civil penalty of at least $1 million.

NCUA’s prohibition order claims the former CEO of the $1.1 billion Melrose Credit Union in Briarwood, N.Y., allegedly violated laws and his fiduciary duties.

 

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