LOUISVILLE, Ky.–More than a year after it was placed into conservatorship by NCUA following allegations of fraud, the former Louisville Metro Police Officers Credit Union is again in the news here as details of the police and FBI investigation become available.
Attorneys representing members who say they were victimized by fake loans created in their names and the resulting missed payments have had their credit scores negatively affected.
“Where was the oversight, where was the supervision, where are the audits?” attorney J. Allan Cobb said in comments to WAVE3.
According to the report, NCUA has agreed to dismiss $600,000 in fictitious loans that had been made in the names of 17 members, many of whom were police officers.
As CUToday.info reported here, Louisville Metro Police CU was placed in conservatorship in December of 2017, when it had $28.7 million in assets and approximately 3,500 members.
Vice President Suspended
Prior to the conservatorship it was announced that former Vice President Josephine Crowe had been suspended. As CUToday.info also earlier reported here, several members have filed suit against the credit union. At the time those suits were filed, the attorney, Cobb, quoted NCUA's Director of Special Actions Mark Cantor as telling him records "do not add up" and that investigators were finding "jaw-dropping stuff."
Cobb, along with attorney Andrea Hunt, told WAVE3 News the credit union’s former board of directors and the Kentucky Department of Financial Institutions are also partially to blame.
Cobb and Hunt told WAVE3 they have put in “hundreds of hours” over the last year as they attempt to get their clients’ money back.
Louisville Metro Police Officers credit union has since been merged into Commonwealth Credit Union.