JACKSON, Miss. —Developments continue in the case here against a former credit union CEO, her husband and a former CU employee who were involved in an alleged $95-embezzlement at Jackson Area FCU, which is now being operated in conservatorship by NCUA.
In the latest court filings, Chad Bridges, the husband of former JAFCU CEO Leigh Bridges, both of whom have been charged in civil court in the case alleging the embezzlement, has asked the court to release two frozen accounts: a Raymond James IRA and a Mississippi deferred compensation account, according to WAPT.
Chad Bridges, a former state of Mississippi employee says the accounts were funded through his own employment and have no connection to the alleged credit union losses.
According to the filing, Bridges contributed to the deferred compensation account through payroll deductions while working for the Mississippi Insurance Department, WAPT reported. He says the only deposit into his IRA during the past 10 years was an $86,479 rollover from a former pension plan.
Bridges told the court he lost his job after the lawsuit became public and now receives about $235 per week in unemployment benefits. He argues that he needs access to the accounts for living expenses, property costs and attorney’s fees, the report stated. He has further requested the court seal the account statements because they contain sensitive information, including balances, transactions and account numbers.
Funez Seeks Dismissal of Claims
Separately, Tina Funez, a former JAFCU employee who is the third defendant, has filed a formal response denying the allegations and asking the court to dismiss the claims against her.
According to WAPT, in the new filings Funez acknowledges financial connections to the Bridges, including using an American Express account belonging to Leigh Bridges and receiving money from the couple, but she denies knowingly participating in wrongdoing or receiving funds she knew were improperly obtained.
In an amended complaint filed in June, NCUA alleged Bridges authorized Funez to use an American Express account that accumulated more than $508,000 in charges. Regulators said the spending included luxury jewelry, designer handbags and other personal purchases.
The court has not ruled on any of the most recent filings.
Other Recent Developments in the Case
Othe recent developments in the case include:
Agency Seeks Trusteeship Over Properties
NCUA has asked a federal judge to place four properties owned by Leigh and Chad Bridges into a court-controlled trusteeship, arguing mounting security and property-management costs are further reducing potential recoveries for the credit union. The agency is seeking control of properties in Jackson and Hazlehurst, Mississippi, and Orange Beach, Alabama.
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.
NCUA is seeking quitclaim deeds, which could transfer legal ownership, a move both Leigh and Chad Bridges say they oppose.
Leigh Bridges told the court she moved out of the couple’s home on Sleepy Hollow Road at the NCUA’s request. She said the property is insured for about $2.1 million and that she has continued paying utilities, repairs and other expenses.
“Her filing argues that the NCUA has spent about $225,652.50 on the properties, including private security, and calls some of that spending unnecessary,” WAPT reported. “Chad Bridges argues that the existing court order already prevents the couple from selling or transferring the properties. He says the NCUA has not shown that the properties are in danger or that a trusteeship is necessary.”
Chad Bridges told the court he would accept limited court supervision to preserve the properties, but said the Bridges should keep legal ownership until the case is resolved.
Fifth Amendment Invoked
As the CU Daily recently reported here, former JAFCU CEO Leigh Bridges invoked the Fifth Amendment at least 16 times in an answer filed in U.S. District Court for the Southern District of Mississippi. Bridges said responding to many of the allegations made by NCUA could potentially be used against her in a criminal proceeding.
The response comes days after Bridges asked U.S. District Judge Daniel P. Jordan III to stay the NCUA’s civil lawsuit because of an anticipated federal criminal prosecution.
According to WLBT, Bridges’ attorney said in the motion that he contacted the U.S. Attorney’s Office for the Southern District of Mississippi and understood that a criminal prosecution involving the same alleged conduct had begun. Bridges and her attorney subsequently met with an assistant U.S. attorney who told them criminal charges would be filed, according to the motion.
Net Worth of Negative 145%
As the CU Daily reported here, JAFCU posted another $12 million in losses during Q2, according to its latest 5300.
The newest quarterly filing shows $60.86 million in assets and 15,704 members as of June 30, with a year-to-date loss of $103 million and net worth of -145.36
As of March 31, the credit union was reporting assets of $71.35 million and a loss of $91.73 million and net worth of -107.94%.
