LITTLE FALLS, Minn.–The former CEO of a credit union that collapsed will be arraigned later this month on felony fraud charges.
Prosecutors allege that Marguerite Mary Cofell, the former CEO of St. Francis Campus Credit Union, stole at least $2.5 million while leading the institution.
The then $51-million St. Mary’s Campus CU was shuttered more than five years ago, with the FBI launching an investigation in 2014. An auditor retained by NCUA has alleged the embezzlement involved a loss of more than $10 million, or 20% of the credit union’s assets.
The alleged fraud case involved bogus loans and unauthorized cash withdrawals in the mid-2000s and gained publicity in 2016 when NCUA filed suit against CUMIS after the insurer said it would not pay a fidelity bond claim, after the agency had filed a proof of loss claim for $3.086 million. CUMIS alleged Cofell had earlier lied on the bond application when seeking to expand its employee dishonesty coverage by $500,000. That suit continues to be litigated.
In 2017, NCUA filed a $2.8-million civil suit against Cofell, who has denied the allegations.
Cofell is due to be arraigned in U.S. District Court in Minneapolis on March 28.