LOUISVILLE, Ky.—Louisville Metro Police Officers CU, which was being investigated by NCUA late last year for alleged thefts and embezzlement, was liquidated Friday by NCUA.
The $1.2-billion Commonwealth Credit Union of Frankfort, Ky., has assumed the CU’s membership, shares, loans, and all other assets, NCUA announced.
The decision to liquidate, made by the Kentucky Department of Financial Institutions—which appointed NCUA as liquidating agent—was made after determining the credit union was insolvent and had no prospect for restoring viable operations.
As CUToday.info reported, in mid-December 2017, the $28.7-million Louisville Metro was placed into conservatorship by NCUA, with the agency saying it was investigating an alleged theft(s) from member accounts. The FBI was also investigating.
Earlier this year, a police officer and his wife filed suit against Louisville Metro, claiming they were the victims of a scheme involving fake loans and misappropriated funds.