NCUA Files $95M Lawsuit Against Former CEO, Husband, Alleging Extensive Theft Via ACH Fraud and More

JACKSON, Miss. — The National Credit Union Administration has filed a federal lawsuit against the former president and CEO of Jackson Area Federal Credit Union and her husband, alleging the executive 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, and more than $14 million in credit card charges. 

According to the complaint filed May 14 in the U.S. District Court for the Southern District of Mississippi, the NCUA, acting as conservator of Jackson Area Federal Credit Union (JAFCU), alleges former President and CEO Leigh Bridges used fraudulent accounting entries, wire transfers and other transactions to divert millions of dollars from the credit union for personal use.

The lawsuit names Leigh Bridges and her husband, Chad Bridges, as defendants and seeks money damages, recovery of transferred funds, disgorgement of compensation, imposition of a constructive trust and other relief. The NCUA alleges Chad Bridges benefited from and held accounts used in the transfer of some of the funds.

CU In Conservatorship

As the CU Daily reported,  NCUA placed the then $143-million JAFCU into conservatorship on May 6 and appointed itself conservator. According to the complaint, JAFCU is headquartered in Jackson, Miss., and reported total assets of approximately $162.4 million and equity of approximately $14.7 million as of Dec. 31, 2025.

The complaint alleges Leigh Bridges became president and CEO around 2021 after previously serving as the credit union’s chief financial officer. The NCUA alleges she was responsible for preparing and signing financial statements submitted to regulators and had authority to initiate wire transfers on behalf of the credit union.

Investigation Over Alleged False ACH Entries

According to the lawsuit, Bridges was placed on paid administrative leave around April 17 following an investigation into allegedly fraudulent Automated Clearing House entries, significant wire transfers to personal accounts, transactions involving luxury retailers and other entities with no business relationship to the credit union, and accounting entries that allegedly overstated the amount of funds JAFCU held with a corporate credit union.

The NCUA alleges Bridges created false deposit entries in share accounts belonging to herself and her husband. According to the complaint, the entries falsely indicated funds had been transferred from outside financial institutions, when in reality the funds came from JAFCU’s general ledger. The lawsuit alleges those entries totaled more than $51 million from 2015 through the present.

Additional Allegations

The complaint further alleges Bridges used credit union funds for numerous personal purchases and transfers. Among the transactions cited in the lawsuit are:

• More than $14.4 million in payments to American Express
• More than $531,000 in payments to Apple Card
• More than $68,000 in payments to Chase Bank credit card accounts
• More than $3.3 million in purchases at Brooks Collection, a luxury jewelry and handbag retailer in Jackson
• Approximately $906,700 in payments to construction company Craig Wilkinson Inc.
• More than $250,000 in payments to Courtney Peters Interior Design.
• Approximately $129,300 used to purchase a Steinway piano
• More than $127,000 used to purchase two vehicles from Mercedes-Benz Porsche of Jackson.
• Approximately $127,000 in payments to a high-end jeweler in Illinois
• Nearly $85,000 in payments for Cox Pools
• A $295,000 wire transfer to luxury jeweler Joseph Gad Inc. in New York
• A $378,780 wire transfer connected to Tiffany & Co.
• A $66,571.50 wire transfer used to purchase a Tesla automobile.
• A $20,130 wire transfer to a company in Hong Kong.
• More than $617,000 in wire transfers to a California company that the NCUA alleges were used to purchase jewelry from a high-end jeweler.

The NCUA also alleges credit union funds were used to purchase, furnish, maintain or improve properties in Jackson and Hazlehurst, Mississippi, and Orange Beach, Alabama.

Admission Alleged

According to the complaint, Bridges admitted during an April 17 meeting attended by JAFCU board members and NCUA examiners that she had misappropriated credit union funds for her personal benefit and used false accounting entries to conceal the activity. The lawsuit also alleges she admitted using JAFCU funds to purchase luxury goods and to transfer money into personal accounts, including accounts at American Express, Acorns Investing and JPMorgan Chase.

The complaint states that, as of April 17, the difference between JAFCU’s stated financial condition and its actual condition reflected a deficit of at least $95 million. The NCUA says it continues to investigate the full extent of losses.

Allegations Against Husband

The lawsuit further alleges Chad Bridges’ accounts at JAFCU received approximately $13.8 million from the credit union’s general ledger between May 2019 and May 2026. According to the complaint, funds flowing through those accounts significantly exceeded Chad Bridges’ payroll income during the same period. The NCUA alleges Leigh Bridges controlled the accounts and used them to conceal transactions from regulators, examiners and the credit union’s board of directors.

The complaint includes claims for fraud, conversion, breach of fiduciary duty, violations of federal credit union director and officer liability statutes, fraudulent transfers, constructive trust and injunctive relief. The NCUA is seeking money judgments, recovery of transferred assets, disgorgement of compensation and court orders preventing the defendants from transferring assets while the litigation proceeds.

The allegations have not been proven in court, and the lawsuit seeks a jury trial.