JACKSON, Miss. — In the case involving an alleged $95-million embezzlement, the National Credit Union Administration Board is asking a federal judge to place four properties owned by former Jackson Area FCU CEO Leigh Bridges and her husband, Chad Bridges, into a court-controlled trusteeship, arguing mounting security and property-management costs are further reducing potential recoveries for the credit union.
NCUA, acting as conservator of Jackson Area Federal Credit Union, filed the motion in U.S. District Court for the Southern District of Mississippi. The agency is seeking control of properties in Jackson and Hazlehurst, Mississippi, and Orange Beach, Alabama.
The request is part of the NCUA’s civil lawsuit against Leigh Bridges, Chad Bridges and Tina Funez.
Among the agency’s most significant disclosures, the NCUA said Jackson Area FCU has incurred $225,652.50 in security costs as of Aug. 20 to protect the Bridges’ vacant Sleepy Hollow residence in Jackson. Security is costing $3,600 per day, according to the filing.
Around-the-Clock Security
The agency said around-the-clock security is necessary in part because of an insurance policy covering the residence and property remaining inside it. Many luxury items previously at the home have been moved to a secure location, but a Steinway piano remains, according to the filing.
The NCUA argued those expenses will continue until it obtains title and possession of the residence, allowing it to control access and use the property’s alarm system.
“Continuing security costs will reduce the recoveries that may be returned to JAFCU in connection with this litigation,” the agency said.
As the CU Daily has been reporting, the new filing reiterates the scale of losses the NCUA attributes to the alleged scheme.
Jackson Area FCU has a deficit of at least $95 million, according to the NCUA. The agency alleged that at least $26.8 million in credit union funds passed through accounts belonging to Leigh and Chad Bridges between 2019 and 2026 and were misappropriated.
What Forensic Auditor Found
In a footnote, the NCUA said its forensic auditor has determined that $73.3 million in Jackson Area FCU losses were attributable to alleged misappropriation by Leigh Bridges. The agency said it could provide documentation detailing that amount if necessary.
The allegations have not been proven in the civil case.
The four properties targeted by the NCUA are a residence at 3826 Sleepy Hollow in Jackson; property at 2085 Great Southern Road in Hazlehurst; a condominium at 29500 Perdido Beach Boulevard in Orange Beach; and a condominium at 257 Eastbrooke Street in Jackson.
All real and personal property owned by the Bridges is already subject to a prejudgment attachment, according to the filing. Leigh Bridges has been living in the Eastbrooke condominium with the NCUA’s permission since early July, while Chad Bridges lives in an apartment. The Sleepy Hollow residence is vacant.
Attempt to Resolve Property Issue
The NCUA said it attempted to resolve the property issue without another court motion. Its attorneys proposed modifying an existing preliminary injunction in July and later sent draft quitclaim deeds to attorneys for Leigh and Chad Bridges.
According to the NCUA, Chad Bridges has refused to sign the deeds unless the agency releases a lien on his retirement account so the money can be used for living expenses and attorneys’ fees. The NCUA said its proposed modification would have provided each defendant with $3,000 per month for living expenses.
The agency also raised concerns about expenses associated with the properties. The Sleepy Hollow residence requires lawn and pool maintenance, and the NCUA said it does not have an accurate accounting of which utility and property-related bills are being paid.
Condo Association Invoices
The NCUA said it has also received multiple communications from the condominium association managing the Alabama property indicating invoices have gone unpaid, potentially resulting in additional interest, fees or attorneys’ fees.
The agency argued that transferring title to a trustee would not force either Leigh or Chad Bridges to move because neither currently lives at the Sleepy Hollow residence. It also said any equity Chad Bridges might have in the properties would not be eliminated merely by transferring title and that the properties could be deeded back if the court ultimately determines the Bridges are entitled to them.
Under the Federal Credit Union Act, the NCUA Board, when acting as conservator or liquidating agent, may ask a court to place a person’s assets under court control and appoint a trustee to hold them, the agency said.
The NCUA is asking the court to impose the trusteeship on all real property owned by Leigh and Chad Bridges.
Earlier Reporting
Earlier reporting in the CU Daily in the Jackson Area FCU case includes:
- Ex-CEO Who Allegedly Misappropriated $95M From CU Repeatedly Invokes Fifth Amendment Rights
- Ex-CEO in Case of Alleged $95M Embezzlement Expecting Criminal Charges to be Filed; Seeks a Stay
- Conserved JAFCU Posts $12M Loss in Q2; Net Worth at -145%
- Judge Issues Freeze on Assets in Case Involving Alleged $95M Embezzlement at Jackson Area FCU
- Luxury Home With ‘Purse Room’ Allegedly Bought With Funds from CU Was Featured in Magazine
- NCUA Expands Lawsuit in Massive Fraud at Miss. CU; Alleges Employee Received Tesla, Jewelry, Private Flights & More
- Husband of CU CEO Charged in Alleged $91M Embezzlement is Placed on Leave by State
- NCUA Files $95M Lawsuit Against Former CEO, Husband, Alleging Extensive Theft Via ACH Fraud and More
