EL PASO, Texas—NCUA is suing the former manager of El Paso's FCU and her husband for allegedly funneling $19 million into different accounts, and using some of that money to benefit herself and her husband. The losses, the lawsuits states, forced the agency to shutter the $5-million CU in 2012.
NCUA filed the suit October 15 against Maria Guadalupe Hernandez, former manager of El Paso's FCU and her husband, Rene Hernandez. The case is scheduled here for a status hearing at 10 a.m. Friday before Senior U.S. District Judge David Briones, the El Paso Times reported.
The lawsuit states that Maria Hernandez, who started as the CU’s manager in 1986, beginning sometime before 2004 and "on numerous occasionsshe caused the credit union to engage in "fraudulent schemes," including issuing share certificates—ranging from $99,000 to $249,000—to nonmember financial institutions without recording the certificates or receipt of the funds in the credit union's financial records.
The lawsuit alleges Maria Hernandez caused the credit union to issue about $19 million in unrecorded nonmember share certificates, the total losses cited in the case. The lawsuit also claims an investigation by NCUA identified about $3.7 million in documented losses to EPFCU caused by the actions of Maria Hernandez, of which about $2.1 million "has been traced to the personal benefit of Maria and Rene" Hernandez.
NCUA alleges Maria Hernandez used fake accounts, along with accounts in friends' names and accounts belonging to dead credit union members, to funnel the money back to herself.
Maria and Rene Hernandez, who have not been charged criminally, denied the allegations, according to the lawsuit.
The lawsuit seeks compensatory damages to be determined at trial, and temporary and permanent injunctions prohibiting the Hernandez's from distributing or getting rid of any assets. A trial date has not yet been set.
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