Former employee of closed MI credit union barred from FI service

Stanley D. Hayes, a former employee of the now-defunct Valley State Employees Credit Union (Saginaw, Mich.), has been barred by the federal regulator of credit unions from any future participation in the affairs of a federally insured financial institution, according to an order posted on the agency’s website.

According to a prohibition order issued by the National Credit Union Administration (NCUA) Aug. 20, Hayes was sentenced on or about April 26 in Michigan state circuit court (Saginaw county) on charges of conducting a continuing criminal enterprise, nine counts of embezzlement, and three counts of using a computer to commit a crime in connection with his employment at the credit unions. All are “criminal offenses involving dishonesty and breach of trust,” the order says.

Valley State Employees CU, state-chartered and federally insured, was liquidated in March 2017 by NCUA, which was named liquidating agent by Michigan’s insurance and financial services regulator. The credit union was initially placed in conservatorship in August 2016, with NCUA appointed conservator in November the same year.

At the time of its closure, and the assumption of its members, assets, shares, and loans by ELGA Credit Union (Burton, Mich.), Valley State Employees had last reported $19.8 million in total assets and 2,715 members.

The Hayes order is one of several that NCUA posted recently to its website as of press time. Named in three others are:

  • Kam Wong, former employee of Municipal Credit Union (New York, N.Y.), who, according to the order, was charged with embezzlement, defrauding a financial institution, and wire fraud in the United States District Court for the Southern District of New York (and whose prohibition was announced by the agency this May);
  • Taren Dawson, former employee/institution-affiliated part of People’s First Federal Credit Union (Tarrant, Ala.); and
  • Amy Simon, former employee/institution-affiliated party of South Jennings Catholic Federal Credit Union (Jennings, La.).

Order: Stanley D. Hayes

Order: Kam Wong

Order: Amy Simon

Order and stipulation: Taren Dawson

NCUA Administrative Orders