TEWKSBURY, Mass.–Shelley Holden, CEO of Tewskbury Credit Union, has been placed on leave by the board after questions were raised related to irregularities around how she handled certain accounts, according to a report by Patch.com.
The publication had reported previously that allegations had been made by a contract employee at the credit union that Holden had transferred large sums of money into his account and then transferred the money into the account of her boyfriend.
The board has now said it is participating in an investigation by NCUA and an auditing firm has been hired to perform a forensic audit of the accounts in question, and a review of the credit union's practices and procedures, according to Patch.com.
"In early December 2017, the board of directors of Tewksbury Federal Credit Union became aware of irregularities involving several accounts, including those held by the chief executive officer and some of her personal acquaintances. The board retained an accounting and auditing firm to investigate," according to the statement obtained by Patch.com. “Once the board has reviewed the auditor's final report and recommendations, it will take appropriate action."
In an earlier report by Patch.com, the publication reported that Rod Morrison, who does business for credit unions under the name Jack Horowitz, said that late last year Holden told him she had made transfers into his account and had changed the mailing address on the account to have statements delivered directly to her.
According to Patch.com, Horowitz lives in Illinois but contracts with credit unions nationally to handle collections of delinquent accounts. “He said he routinely opens accounts at the credit unions he works with, but had not used his account at Tewksbury Federal in several years,” Patch.com reported. “He said Holden made deposits for $12,000 and $16,000 into his accounts and then transferred the money out of his account into the account of Michael Stimpson.
Holden is the daughter of Kenneth W. "Bunky" Holden, a popular captain in the Tewksbury Fire Department who founded the credit union in 1960. Kenneth Holden died in October, according to Patch.com.
"I don't know where the money came from, but she told me [late last year] that she had transferred it to" Stimpson, Horowitz said. "I needed to say something as other people with accounts at the credit union may want to check their accounts."
According to Patch.com, Stimpson pleaded guilty to second degree murder in June 1979 in the 1978 beating death of a John McCann, 35, of Lowell, with his brother, Kenneth Stimpson. When Stimpson was paroled eight years ago, he began working with Horowitz to clean up his delinquent account with the credit union. During his regular visits to the credit union to make payments, he met Holden and the two began dating, Horowitz told Patch.com.
Patch.com further reported that when he started working for the Tewksbury Federal Credit Union eight years ago, Horowitz was paid for each account he worked on and earned as much as $350,000 per year. He has since renegotiated his contract with the credit union and now collects a flat retainer of $40,000 per year, the publication said.