Meriden F.A. Federal Credit Union

The National Credit Union Administration (NCUA) placed Meriden F. A. Federal Credit Union of Meriden, Connecticut, into liquidation today.

The NCUA Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the Meriden F. A. Federal Credit Union within one week. Through the NCUA National Credit Union Share Insurance Fund, credit union members’ deposits are insured to at least $100,000 on regular accounts and $250,000 on certain retirement accounts.

NCUA made the decision to liquidate Meriden F. A. Federal Credit Union and discontinue its independent operations after determining that the credit union is insolvent. It has no prospects for restoring viable operations. At the time of liquidation, the credit union served 206 members and had assets of approximately $337,968.

In addition to doing business at the on set of a credit crisis Meriden Franco-American Federal Credit Union was plagued by the weight of more than $200,000 worth of embezzlement by one of it’s own.

Prosecutors say 39-year-old Melissa Laliberte took unauthorized cash from members of the Meriden Franco-American Federal Credit Union. The money was intended to pay down loan balances. Court documents showed Laliberte drew her salary multiple times each month, used money from the credit union to pay personal expenses, falsified deposits to her own account and failed to post loans and withdrawals from her own account and that of her husband.

The strain was more than the credit union or regulators could bear.

The National Credit Union Administration (NCUA) placed Meriden F. A. Federal Credit Union of Meriden, Connecticut, into liquidation today.

The NCUA Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the Meriden F. A. Federal Credit Union within one week. Through the NCUA National Credit Union Share Insurance Fund, credit union members’ deposits are insured to at least $100,000 on regular accounts and $250,000 on certain retirement accounts.

NCUA made the decision to liquidate Meriden F. A. Federal Credit Union and discontinue its independent operations after determining that the credit union is insolvent. It has no prospects for restoring viable operations. At the time of liquidation, the credit union served 206 members and had assets of approximately $337,968.

NCUA chartered Meriden F. A. Federal Credit Union in 1954 to serve members of the Franco-American Club, Inc. located in Meriden, Connecticut.

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund, insuring the savings of nearly 87 million members in all federal credit unions and most state-chartered credit unions. NCUA operations are funded by credit unions, not tax dollars.

Posted in CREDIT UNION FAILURES | No Comments »