A troubled Mississippi credit union was closed and its members and savings (shares) were assumed by an Alabama Credit Union, the federal regulator announced late Wednesday.
Jackson Area Federal Credit Union (FCU), of Jackson Miss., was closed and its members and savings assumed by Five Star Credit Union of Dothan, Ala., the National Credit Union Administration (NCUA) said. The Alabama credit union, through a partial purchase and assumption, bought some of the closed credit union’s assets. Jackson Area FCU has now been liquidated, the agency said.
The Mississippi credit union had been under NCUA conservatorship since May. Between then and now, allegations have arisen about the credit union’s management. According to press reports, the credit union’s former CEO Leigh Bridges pleaded guilty Sept. 28 to federal charges related to the alleged embezzlement of $69 million from the credit union. She now faces up to 70 years in prison and millions of dollars in fines under sentencing scheduled for Feb. 25.
The agency said it decided to close the credit union after it determined it was insolvent and had no prospect for restoring viable operations.
After several months of analysis and stakeholder engagement, NCUA made the decision to liquidate Jackson Area FCU and discontinue its operations.
The 73-year-old Jackson Area FCU counted more than 15,700 members and held assets of approximately $60 million, according to its most recent NCUA call report, the agency said. It served employees of the City of Jackson, Miss., as well as employees and elected or appointed officials of Hinds County, including 38 distinct groups, primarily composed of local government employees.
Five Star Credit Union is a federally insured state credit union counting more than 68,800 members and holding assets of $1.261 billion, according to the credit union’s most recent call report, NCUA said.
Jackson Area Federal Credit Union Closes; Five Star Credit Union Assumes Members and Shares
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