The former chief executive officer of a now-closed New York credit union has been prohibited from future service (becoming an “institution-affiliated party”) at any federally insured financial institution, the federal regulator said Friday.
Alan S. Kaufman, the former CEO of Melrose Credit Union (MCU) in New York, N.Y., was prohibited by the National Credit Union Administration (NCUA). According to NCUA, Kaufman was convicted and sentenced in 2021 on two counts of “Receipt of Commissions or Gifts for Procuring Loans” in federal court in New York. The agency said Kaufman’s conviction was the result of his misconduct at MCU.
NCUA liquidated MCU in August 2018. At the time, the agency said the liquidation decision was made after the agency determined “the credit union was insolvent and had no prospect for restoring viable operations.”
The agency also filed administrative charges against Kaufman at that time, alleging that Kaufman breached his fiduciary duties at the credit union by “placing his own interests above those of the credit union, that he engaged in unsafe or unsound practices, and that he violated applicable laws and regulations.” Kaufman also served as treasurer and as a board member of the credit union.
NCUA’s notice further alleged Kaufman benefitted from his actions and that he caused “severe financial loss” to Melrose, the agency said.
When the credit union closed, NCUA said it counted about 20,000 members and held $1.1 billion in assets). The credit union was originally chartered in 1922, NCUA said, and served “eligible members subject to the provisions of its bylaws, which could include any person upon approval for membership.”
The credit union in 2018 had been hobbled by the collapse of the taxicab medallion market in which it had been heavily involved, in addition to the allegations executive misconduct.
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