ALEXANDRIA, Va. (1/14/16)--In Michigan, the director of the Department of Insurance and Financial Services placed Clarkston Brandon Community CU into conservatorship Wednesday. The state regulator appointed the National Credit Union Administration (NCUA) as conservator.
The actions were taken when the Michigan department found Clarkston Brandon Community was operating under unsafe and unsound practices.
It has been widely reported this month that the chief financial officer of the credit union allegedly confessed to police that he had embezzled $20 million from the credit union over 12 years. That former officer has pleaded not guilty.
With the NCUA as conservator, normal member services will be allowed to continue as the agency works to resolve issues affecting the credit union’s operations. Members can continue to conduct financial transactions, deposit and access funds, make loan payments and use shares.
Clarkston Brandon Community is a federally insured, state-chartered credit union with 9,413 members and assets of $68.8 million, according to the credit union’s most recent call report. It was chartered in 1957 and serves the residents and businesses of Oakland, Genesee, Lapeer, Livingston and Macomb counties in Michigan.
Deposits with the credit union remain protected by the National Credit Union Share Insurance Fund, which has the backing of the full faith and credit of the United States.