JACKSON, Miss.–A federal judge has ordered a broad freeze on the assets of former Jackson Area Federal Credit Union CEO Leigh Bridges, her husband, Chad Bridges, and one former credit union employee as part of the alleged $95-million embezzlement at the credit union.
U.S. District Judge Daniel P. Jordan III granted NCUA’s request for a preliminary injunction, continuing a freeze on the couple’s financial accounts and assets until a final judgment is reached in the case. The judge also approved a prejudgment attachment of their assets and placed certain personal property under the agency’s trusteeship.
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.
It has also been alleged the luxury goods ordered by the CEO continued to arrive at the credit union even after NCUA had taken over the credit union and removed the former CEO.
All Accounts Frozen
The judge’s order freezes all financial accounts owned or controlled by Leigh and Chad Bridges, including investment and banking accounts at multiple financial institutions. The judge has further prohibited the couple from transferring or disposing of other assets, including real estate, vehicles, artwork, jewelry, handbags and other valuables.
Among the properties listed in the court order are homes in Jackson and Hazlehurst, Mississippi, and a condominium in Orange Beach, Alabama. The order also identifies several vehicles, including Tesla and Mercedes-Benz models, as assets subject to the freeze.
Custody to be Taken of Most Property
The court also authorized the NCUA to inventory and take custody of certain personal property valued at more than $100, including artwork, antiques, furniture, electronics, handbags, clothing and musical instruments. Defendants must allow agency representatives access to inspect the property under terms outlined in the order.
In a separate order, Judge Jordan granted a similar preliminary injunction against former branch manager Tina Funez, continuing restrictions on her assets and property during the litigation. The order likewise prohibits the transfer or dissipation of assets identified by the NCUA and maintains judicial control over property the agency contends is traceable to the alleged fraud. Funez was allegedly the recipient of gifts and travel allegedly paid for by the embezzlement.
Seeking to Recover Damages
Judge Jordan wrote that the order is intended to preserve assets while the lawsuit proceeds and to prevent the transfer or dissipation of property that could affect the NCUA’s ability to recover damages if it prevails. The judge also noted that Leigh and Chad Bridges did not respond to the NCUA’s motion after receiving notice, allowing the court to grant the request as unopposed.
NCUA has placed Jackson Area FCU into conservatorship. The NCUA’s civil actions are separate from any potential criminal proceedings related to the alleged fraud.
