NCUA Opposes Stay In Jackson Area FCU Case, Says Bridges Appears Headed For Plea Deal
By CU Today Staff —
JACKSON, Miss. — NCUA is opposing former Jackson Area FCU President and CEO Leigh Bridges’ effort to halt the agency’s $95-million civil case against her, arguing a newly disclosed indication that she may be headed toward a plea agreement undercuts her claim that the civil proceedings threaten her Fifth Amendment rights.
In a filing Friday, the NCUA board, acting as conservator of Jackson Area FCU, asked U.S. District Judge Daniel Jordan to deny Bridges’ motion for a stay, arguing that civil and criminal cases are generally permitted to proceed simultaneously and that Bridges has not demonstrated the “substantial and irreparable prejudice” required to stop the civil action.
The filing provides a significant new clue about the expected criminal case. Bridges previously disclosed that prosecutors intend to file a Bill of Information alleging violations of federal laws covering misapplication of credit union funds, false entries and tax violations. The NCUA said that because the potential offenses are felonies, Bridges could proceed by information only by waiving indictment in open court. The agency argued that such a waiver, combined with statements her attorney has made to NCUA counsel, suggests Bridges is likely to enter a plea agreement rather than contest criminal charges.
That development follows CUToday.info’s report last week that Bridges invoked her Fifth Amendment right against self-incrimination at least 16 times in responding to the NCUA lawsuit. Her attorneys have said they met with assistant U.S. attorneys conducting a criminal investigation and were told charges “will be filed shortly.” Bridges subsequently asked Jordan to stay the civil case while the anticipated criminal matter proceeds.
The NCUA also disclosed that preserving assets it hopes to recover is becoming increasingly expensive. The agency said it has taken custody of valuable jewelry, handbags and other property belonging to Leigh and/or Chad Bridges and is paying at least $5,000 per month to store those items. Separately, 24-hour security at Bridges’ former Sleepy Hollow residence, which contains additional property including a Steinway piano, has already cost $225,652.50 and is continuing at $3,600 per day. The NCUA warned that even a relatively short stay could cause those costs to consume the value ultimately recovered from some of the property.
The agency further revealed it may not need testimony or discovery from Bridges to pursue its case. The NCUA said Bridges already admitted in April to misappropriating JAFCU funds for her personal benefit and using false financial entries to conceal the activity, and said it currently expects to seek summary judgment against her based on evidence already in the record. If discovery later raises Fifth Amendment issues, the agency said Bridges could renew her request for a stay.
As CUToday.info has previously reported, the NCUA alleges approximately $95 million was diverted from Jackson Area FCU through fraudulent transactions, false accounting entries and transfers that financed luxury vehicles, jewelry, designer goods, real estate and other spending. The agency placed the credit union into conservatorship May 6. The latest filing also reveals the National Credit Union Share Insurance Fund has guaranteed a $110-million line of credit to JAFCU, leaving the fund responsible for unmitigated losses and adding, the NCUA argued, to the public interest in moving the case forward. If Jordan nevertheless grants a stay, the agency is asking that it apply only to discovery involving Leigh Bridges and not halt proceedings involving Chad Bridges or Tina Funez.
Originally reported by CU Today.