BROWNSBURG, Ind. — An investigative podcast says a National Credit Union Administration examiner was listed as the certifying official on multiple financial reports filed by a credit union that later collapsed after its chief executive embezzled nearly $2.1 million.
The Overdrawn podcast said that NCUA confirmed the examiner appeared in the certifying official field on eight quarterly Call Reports submitted by IBEW Local Union 712 Federal Credit Union from 2016 through 2019. A ninth report, for December 2019, identified NCUA as the certifying official.
The credit union failed in 2020 following the embezzlement by its CEO, according to the podcast, which cited court records. Asked why the examiner was listed as the certifying official, NCUA responded, “That is because he was the certifying official,” the podcast said.
“This episode isn’t a story about one examiner,” said Andy Janning, Overdrawn’s executive producer and host. “It’s about what a certification is worth when the regulator’s name is in the space meant for the credit union’s own officer, and the regulatory agency will not answer why.”
Rreview of Other Reports
Former NCUA examiner Joshua Herman analyzed publicly available agency data for the podcast and identified at least 280 Call Reports from more than 120 credit unions in the agency’s former Region II between 2009 and 2019 that included an examiner’s name, a reference to an examiner or examination, or NCUA in the certifying official field, Overdrawn said.
The podcast said NCUA did not answer questions about whether the practice was limited to a particular examiner or region.
NCUA’s Examiner’s Guide permits an examiner to upload a corrected Call Report when a credit union cannot or will not do so. Herman said some of the entries could be consistent with corrections, but the podcast said records released by NCUA did not identify the credit union’s reports as corrections.
Inspector General Review Questioned
The episode also examined the NCUA inspector general’s limited review of the credit union’s failure in 2020. According to records obtained by the podcast under the Freedom of Information Act, the deputy inspector general wrote that “unusual circumstances” might warrant a “full scope” review.
The following morning, the inspector general wrote, “We have never looked at credit cards as an issue, so that is interesting.” The office ended its review hours later, according to Overdrawn.
The podcast emphasized that the examiner has not been accused of wrongdoing and that no records it obtained show he knew about or participated in the embezzlement or knowingly submitted false information. Overdrawn did not identify the examiner. NCUA said the examiner was not authorized to speak publicly about examination activities, according to the podcast.
About the Podcast
Overdrawn describes itself as an independent investigative podcast examining the embezzlement and failure of IBEW Local Union 712 Federal Credit Union.
