August 24, 2014

NCUSIF to get $5.4 million from fraud case

Aug. 15, 2014 – NCUA said it has received a restitution of almost $5.4 million resulting from a fraud prosecution by the U.S. Attorney's office of the Northern District of New York against the now-defunct BCT Federal Credit Union.

The restitution payment will go to the National Credit Union Share Insurance Fund, NCUA said.

The prosecution followed the 2011 liquidation of BCT FCU of Binghamton, N.Y. Visions Federal Credit Union of Endicott, N.Y., purchased and assumed BCT's assets, liabilities and member shares. NCUA credits its examiner with uncovering the fraud and says no BCT members lost any insured shares.

The agency said the fraud led to BCT's liquidation and that the perpetrators are in federal prison.