NEW ORLEANS — A federal appeals court has upheld the dismissal of a lawsuit filed by the former head of a South Texas credit union who sought to block regulators from pursuing an enforcement case against him.
The U.S. Court of Appeals for the Fifth Circuit on Aug. 25 affirmed a lower court’s ruling that it lacked jurisdiction over claims brought by Jeffrey Moats, the longtime CEO of Edinburg Teachers Credit Union. Moats had argued the National Credit Union Administration’s enforcement action against him was unconstitutional.
Moats was ousted in 2021 when Texas regulators placed the Edinburg-based institution into conservatorship and appointed the NCUA to oversee it. He alleges the agency seized both credit union and personal property, denied him benefits, and later filed administrative charges after he sued in state court for compensation.
Procedures Challenged
In federal court, Moats challenged the NCUA’s structure and procedures, claiming the administrative law judge overseeing his case was improperly insulated from removal, that he was being denied his right to a jury trial, and that the enforcement process violated due process and the non-delegation doctrine.
The Fifth Circuit panel, however, said the merits of those arguments were not before it. The only issue, Judge Jacques Wiener wrote, was whether the district court correctly dismissed the case for lack of subject matter jurisdiction. “It did,” the opinion concluded.
The NCUA’s enforcement action against Moats remains stayed while litigation continues.
