ALEXANDRIA, Va.― NCUA has issued a conviction-based prohibition against a former CEO who would become part of a high-prorile case at a CU that would lead to huge losses to the NCUSIF, as well as four consent-based prohibitions to others for thefts and embezzlements.
All of the individuals are permanently prohibited from participating in the affairs of any federally insured depository institution.
Issued the notice of prohibition was Alan Kaufman, the former CEO of Melrose Credit Union in Briarwood, N.Y., who was convicted and sentenced in the United States District Court for the Southern District of New York with two counts of Receipt of Commissions or Gifts for Procuring Loans, 18 U.S.C. § 215(a)(2).
This is the second action the agency has taken against Kaufman, who was also issued a notice of prohibition in 2019.
While Melrose Credit Union would result in deep losses to the NCUSIF, Kaufman’s sentence to 46 months in federal prison in September 2021 was not related to the failure. Rather, a jury convicted him of bribery and accepting illegal gratuities, including free rent, home financing, and lavish vacations, in exchange for approving favorable loans and media advertising with CBS Radio.
Kaufman was also ordered to pay $2 million in restitution to the National Credit Union Administration (NCUA), a $30,000 fine, and forfeit his Jericho, N.Y., home.
Massive Crisis
Melrose Credit Union was part of the taxi medallion lending crisis in New York beginning in approximately 2013 when the emergency of ride-sharing services eroded the once sky-high prices for taxi medallions (some medallions were priced in excess of $1 million). When medallion prices plunged, their value as loan collateral did, as well, and numerous CUs that specialized in medallion loans were either liquidated or conserved after many borrowers stopped making payments.
Melrose CU had $1.1-billion in assets at the time it was liquidated, with 71% of its loan portfolio comprised of taxi medallion loans. NCUA’s material loss review can be found here. MCU’s failure would cost the insurance fund more than $700 million, with failures by other taxi medallion lenders adding to the losses.
Orders of Prohibition
The following individuals all of whom agreed and consented to the issuance of a prohibition order and agreed to comply with all its terms to settle and resolve the NCUA Board’s claims against them:
- Aaron Steele, former employee of The Police Federal Credit Union in San Bruno, Calif. On or about March 15, 2024, TPCU learned that Steele had stolen approximately $110,000 from a dormant TPCU member’s account via a series of ACH transfers and ATM withdrawals, NCUA said.
- Marilyn Sullins, former employee of Aldersgate FCU, Marion, Ill. During her employment, from at least January 2020, through May 2025, Sullins fraudulently prepared loan applications and distributed funds between member accounts. Subsequently, a review of AFCU records revealed her misconduct totaled to more than $2 million in losses to the credit union, NCUA said. NCUA liquidated the then $10.5-million Aldersgate FCU, which served the Illinois Great Rivers Conference of the United Methodist Church, in 2025.
- Melissa Biscayno, former employee of Seattle Metropolitan Credit Union, Seattle. From at least April 2020, through March 2023, Biscayno was employed as a consumer lending specialist with SMCU. According to NCUA, during her employment, it is alleged she engaged in misconduct for her personal financial benefit by violating credit union guidelines to issue fraudulent automobile loans. “For each loan issued, the respondent was paid a commission,” the agency said. “A review of SMCU records revealed her misconduct totaled to more than $395,000 in losses to the credit union.
- Christopher Chelette, former CEO of Valex Federal Credit Union, Alexandria, La. According to NCUA, “From July 2006 through May 2025, Respondent was employed as chief executive officer with Valex FCU. Between January 2020 and May 2025, Respondent embezzled credit union funds for his personal use. His misconduct included fraudulent use of corporate credit cards, issuing loans with preferential rates to family members, and altering existing real estate loans outside of credit union policy. In May 2025, Valex FCU ended Respondent’s employment. Subsequently, Valex FCU’s investigation determined Respondent’s misconduct totaled to more than $252,000 in losses to the credit union and/or its members.”
