ALEXANDRIA, Va.–Fraud played a role in two of the three most recent credit union failures, which in total cost the insurance fund just over $1 million.
In its latest Semi-Annual Report to Congress on the period Oct. 1, 2021-March 31, 2022, NCUA’s Office of Inspector General said it has identified the reasons for the failures and that none require additional auditing work or investigation.
The three CUs that failed, along with the reason for the liquidation or appointment, are outlined in the chart below from NCUA.
Investigation Continues
Meanwhile, the same OIG report says the agency continues to investigate the failure of the then $6.604-million Indianapolis’ Newspaper FCU, which reported a whopping loss of $852,232 on its Sept. 30, 2020 call report. NCUA said the loss and resulting conservatorship were due to fraud, which cost the NCUSIF $2.29 million.
In a purchase-and-assumption deal, INFCU was merged into Elements Financial FCU.
The full report can be found here.