Whistleblower Lawsuit Reveals Undisclosed Enforcement Order
by Keith Leggett
A whistleblower lawsuit filed by the former CEO of Ukrainain National Federal Credit Union reveals that the credit union was under an enforcement order.
The Credit Union Journal (paid subscription) reported that the Letter of Understanding and Agreement required the credit union to adopt a new governance structure, follow its own bylaws, and hire new executives as chief financial officer and chief operating officer.
If this lawsuit had not been filed, this enforcement action would never had been disclosed.
You would assume that members have a right to know that their credit union had regulatory issues, which rose to the level of an enforcement order.
Unfortunately, the National Credit Union Administration continues to cover up for credit unions by not disclosing enforcement orders.
This practice needs to come to an end.
It is a sorry state of affairs when you learn about an enforcement order through a news story reporting on a lawsuit.
