The troubled Louisville Metro Police Officers Credit Union has been liquidated and purchased by the Commonwealth Credit Union, according to a news release.
The Kentucky Department of Financial Institution last week appointed the National Credit Union Association to act as a liquidating agent for the embattled credit union, which has been the subject of an ongoing FBI investigation into possible fraudulent investments.
“We welcome our new credit union owners to the family, and I want them to know they are in good hands,” Karen Harbin, president and chief executive of Commonwealth Credit Union, said in a statement. “We are here to ensure that no credit member loses any money or access to valuable credit union services. Security is the number one priority at Commonwealth Credit Union.”
According to the NCUA, “the decision to liquidate Louisville Metro Police Officers Credit Union and discontinue its operations was made after determining the credit union was insolvent and had no prospect for restoring viable operations.”
Media reports state that the officers’ credit union lost more than $5.4 million during the last two fiscal quarters.
At the time of the sale, the credit union had 3,349 members with assets totaling around $20 million, the association said.
Commonwealth Credit Union of Frankfort is a federally insured, state-chartered credit union with 98,376 members and assets of $1,185,612,654, according to the credit union’s most recent Call Report.
The officers’ individual accounts are insured up to $250,000 under the FDIC, and while the Commonwealth Credit Union will be assuming all responsibility over the new accounts for a seamless transition, a pending class-action lawsuit seeks “compensatory damages, statutory damages, and punitive damages; and pre- and post-judgment interest” in addition to other relief.
Filed in March 2018 by LMPD officer George Campos and his wife, Heather, the class-action suit alleges theft, misappropriation of member funds and taking out fraudulent loans on behalf of unaware members.
Here is a copy of the lawsuit, which has since been remanded to the Western District Court of Kentucky: