JACKSON, Miss. — In a case that involves allegations of a $95-million embezzlement, former Jackson Area Federal Credit Union President and CEO Leigh Bridges says federal prosecutors have told her that criminal charges will be filed against her shortly in connection with the same conduct at issue in a civil lawsuit brought by the National Credit Union Administration.
The disclosure came in one of two significant filings Tuesday in the NCUA’s civil case against Bridges, her husband, Chad Bridges, and former credit union employee Tina Funez.
As the CU Daily reported here, NCUA is alleging the defendants misappropriated at least $95 million from the institution over a period spanning several years, with the funds allegedly going to luxury jewelry, a grand piano, multiple properties, private plane travel and more than $14 million in credit card charges. The CU Daly has a separate report here that raises questions around where the examiners were during the alleged embezzlement and how it could go on for so long.
Former CEO Seeks Stay
In the first filing, Leigh Bridges asked the U.S. District Court for the Southern District of Mississippi to stay the NCUA’s civil action while the expected criminal case proceeds. Her attorneys said they contacted the U.S. Attorney’s Office for the Southern District of Mississippi and subsequently met with assistant U.S. attorneys handling the matter, who told them charges would be filed shortly.
More specifically, Bridges’ filing states that although she had not been indicted as of Aug. 11, a Bill of Information will be filed charging her under 18 U.S.C. §§ 657 and 1006 and 26 U.S.C. § 7206. Those statutes involve, respectively, theft, embezzlement or misapplication by an employee or officer of a lending or credit institution; fraud involving federal credit institutions; and filing or assisting in the filing of false tax returns or other tax documents.
The filing does not state the specific counts Bridges will face, the amounts involved in the prospective criminal charges or when the Bill of Information will be filed.
Bridges contends the criminal case and the NCUA civil case involve the same alleged conduct.
‘Significant Overlap’
“The facts and issues in the civil action significantly overlap the facts and issues in the criminal proceedings against Defendant Leigh Bridges,” her attorneys wrote, adding that the two cases allege the “same facts and issues.”
Bridges argues that allowing the civil case to proceed simultaneously would force her to choose between invoking her Fifth Amendment right against self-incrimination and fully defending herself against the NCUA’s allegations. She is asking the court to stay the civil case until the criminal proceedings are completed.
The development represents the clearest indication to date in the court record that the allegations surrounding Jackson Area FCU have moved beyond the NCUA’s civil action and into an impending federal criminal prosecution.
Husband Files Separate Defense
In a separate filing Tuesday, Chad Bridges denied wrongdoing and asked the court to dismiss the NCUA’s claims against him.
Chad Bridges, who is accused by the NCUA of receiving the benefit of funds allegedly improperly transferred from the credit union, said he was merely a “title holder” and “innocent owner” of property that may have been acquired through the alleged conduct.
As the CU Daily reported previously, Leigh Bridges allegedly transferred about $26.8 million through Chad Bridges’ JAFCU share accounts between May 2019 and May 2026.
His affirmative defenses state that he lacked knowledge of and did not participate in the alleged acts and generally denies substantive allegations asserting wrongdoing on his part.
The NCUA’s amended complaint includes claims against Chad Bridges for fraudulent transfers under federal and Mississippi law. In his answer, he specifically denied key allegations supporting those claims.
Chad Bridges acknowledged that:
- Leigh Bridges was employed by Jackson Area FCU and eventually became its president and CEO.
- She was later placed on administrative leave.
- He was generally aware of share accounts at the credit union, but contends he was only a “mere title holder” and exercised no control over them.
- All of the financial accounts at issue have been frozen.
- Funez was employed by Jackson Area FCU and was a family friend.
He repeatedly denied having knowledge of or involvement in the conduct alleged by the NCUA.
Chad Bridges also acknowledged that financial assistance had been provided to Funez, while saying he lacked sufficient information to admit the NCUA’s remaining allegations concerning that assistance.
Nine Affirmative Defenses
His nine affirmative defenses include claims that the NCUA’s amended complaint fails to state a claim against him; that he was an innocent owner; that he lacked knowledge of the alleged conduct; and that any damages were caused by the acts or omissions of others. He also argues any damages should be reduced by other recoveries and contends the NCUA may have failed to mitigate its damages.
Chad Bridges is asking the court to dismiss all claims against him.
Criminal Case Could Alter Civil Litigation
As the CU Daily reported, the NCUA filed the civil case May 14 and amended it June 15. The agency is acting as conservator of Jackson Area FCU and has sued Leigh Bridges, Chad Bridges and Funez over alleged misappropriation of credit union funds and related transactions.
Leigh Bridges’ latest filing could significantly affect how quickly that case proceeds. Her attorneys argue that the civil and criminal matters are effectively parallel proceedings and that discovery in the NCUA case should not move forward while she faces imminent federal charges.
Her motion cites six factors courts generally consider when deciding whether to stay a civil case because of a parallel criminal proceeding, including the overlap between the cases, the status of the criminal prosecution, the interests of the plaintiff and defendant, judicial efficiency and the public interest.
No criminal charging document was included with Bridges’ motion, and the filing reflects representations by Bridges and her attorneys concerning what federal prosecutors told them. The court had not ruled on the request for a stay in the materials provided.
