Former MCU board members sue New York regulator
Removed directors deny charges and want their seats back to “right a wrong.”
Former volunteers of the $2.9 billion Municipal Credit Union in New York are suing the state regulator to get their board seats back.
After former MCU President/CEO Kam Wong was accused of allegedly stealing millions and fired by the board in June, the New York State Department of Financial Services removed the entire board for failing to discharge their duties and for accepting compensation, which is prohibited in the Empire State.
Spokespersons for the NYSDFS and MCU declined comment.
A former board member who spoke to CU Times on the condition of anonymity argued the board performed their duties, pointing out that volunteers relied on financial reports from six different layers of the credit union’s management, and information from state and federal examinations, that did not detect Wong’s alleged fraud.
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