ALEXANDRIA, Va. (8/25/14)--The National Credit Union Administration has issued a cease and desist order to David Addison, former CEO of Texans CU, Richardson, Texas.
The order, to which Addison consented without admitting fault, requires that he not become an employee of, hold any office in or serve as a board member of any federally insured credit union or credit union service organization.
Addison served as CEO of $1.4 billion-asset Texans CU from 2003 to 2009. The NCUA filed a complaint in federal district county Dec. 20, 2012, alleging Addison was "grossly negligent" in how he ran Texans, which included pursuing a high-risk business and investment strategy. Texans CU is currently under conservatorship.
According to NCUA's complaint, Addison's "gamble with TCU's funds in these high-risk, largely unstable businesses and investments is what caused TCU's ultimate downfall."
"Mr. Addison's actions were very costly to the credit union, and financial institution regulators have a responsibility to hold accountable those parties--institutions or individuals--when they undermine safety and soundness," NCUA Chair Debbie Matz said when the lawsuit was announced.
Since the Texans CU was placed into a conservatorship, TCU has improved operating efficiencies and risk-management strategies, according to the NCUA, and it earned more than $21 million in 2012.
Use the resource link below to access to cease and desist order.