CBS Federal Credit Union Member Class Action Lawsuit: 10 Lessons for Board and Supervisory Committee Members

In March 2019, a CBS Federal staffer discovered $3.9 million of fraudulent checks payable to the CEO. The checks were just the tip of the iceberg. Within days, the credit union was pronounced insolvent and liquidated. An FBI investigation uncovered a 20-year scheme and a $40 million embezzlement by the CEO, a former NCUA examiner.

Board and Supervisory Committee Members have now been personally sued by a member. In August 2019, a CBS Federal member filed a class action lawsuit against the individual Board of Director and Supervisory Committee members with a request for a jury trial. The lawsuit alleges that the leadership of CBS Federal is personally liable to the credit union membership for lost dividends, higher loan rates, and other missed opportunities.

Covered Topics

  • Board and Supervisory Committee fiduciary duties
  • Warning signs the CBS volunteers missed
  • How to encourage whistle blowers
  • Should your credit union outsource internal audit functions?
  • Implications under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)
  • Guidelines for choosing the right CPA Firm

Who Should Attend?

Credit Union Board Members, Credit Union Management, and Compliance Officers will all benefit from attending this webinar.