Press
Michigan Credit Unions Remain Safe, Secure Following Incident at One-Employee Location
LANSING – Michigan credit unions today reassured members and the general public that credit unions remain safe and secure, and that member deposits are insured, after a woman who was the sole employee of a one-location credit union near the Ohio border was charged with embezzlement.
“Members of credit unions across Michigan should rest assured that their money is safe and sound, and that credit unions are well-run, sophisticated financial institutions that typically have adequate checks and balances to avoid this type of event,” said Michigan Credit Union League & Affiliates CEO David Adams. “Credit unions and regulators go to great lengths to ensure that proper safeguards are in place so our members’ money is safe. Our association stands ready to assist authorities in any way we can to get to the bottom of this incident, which is an aberration, and to ensure that it doesn’t happen again.”
Credit union deposits are insured by the federal government through the National Credit Union Administration’s Share Insurance Fund and no credit union member funds are in jeopardy.
A 61-year-old woman who was the only employee at the United Catholic Credit Union in Temperance has been charged with embezzling $2.1 million. According to the Associated Press, state prosecutors say Sharon Broadway of Toledo, Ohio, stole money for more than 20 years by using aliases and forged checks. Many certificates of deposit were not recorded.
According to the most recent data, United Catholic Credit Union, which had just one location, had 210 members from Catholic churches in Monroe County, with around $305,000 in total deposits. Members’ deposits are insured through the NCUA up to $250,000.
“This is an extremely isolated incident,” Adams added. “There is a certain risk of fraud inherent in any business, especially financial institutions. But the framework and the very nature of credit unions mitigates that risk significantly. Credit unions offer deposit insurance and other insurance protections, strong regulatory supervision by state and federal agencies and strong oversight by the institutions’ boards themselves. Credit unions have an impeccable and trustworthy record as stewards of consumers’ savings and investments.”
About the Michigan Credit Union League & Affiliates
Organized in 1934, the Michigan Credit Union League is a trade association representing credit unions statewide. Based in Lansing, the MCUL offers credit unions assistance in the areas of regulatory compliance, legislative advocacy, media advocacy and operational information. For more information, visit www.mcul.org and follow us on Facebook at www.facebook.com/MICreditUnions and on Twitter at www.twitter.com/MICreditUnions