$95 Million Gone: NCUA Alleges Massive Credit Union Fraud Scheme
By CU Today Staff —
JACKSON, Miss.— Federal regulators have accused former Jackson Area Federal Credit Union President and CEO Leigh Bridges and her husband, Chad Bridges, of orchestrating a years-long scheme that allegedly siphoned at least $95 million from the Mississippi credit union, according to a civil lawsuit filed by CUA just days after the institution was placed into conservatorship.
The complaint, filed May 14 in the U.S. District Court for the Southern District of Mississippi, seeks to recover funds the agency alleges were diverted through fraudulent transactions and self-dealing.
According to the NCUA's complaint, Leigh Bridges began misappropriating credit union funds as early as 2015 while serving as chief financial officer, years before she was promoted to president and CEO in June 2022 following the retirement of longtime CEO Gary Fairley. The agency alleges the misconduct continued for more than a decade and expanded after Bridges assumed control of the institution.
The lawsuit was filed nine days after the NCUA placed Jackson Area Federal Credit Union into conservatorship on May 6, citing concerns over the institution's safety and soundness. As conservator, the NCUA assumed control of the credit union's operations and records while beginning an investigation into the institution's finances and management practices.
In its complaint, the NCUA alleges Leigh and Chad Bridges used a network of accounts and transactions to divert credit union money for their personal benefit. Regulators contend the alleged scheme resulted in losses exceeding $95 million, making it one of the largest fraud cases ever alleged against a federally insured credit union executive. The agency is seeking damages, restitution, disgorgement of allegedly ill-gotten gains and the recovery of assets tied to the alleged misconduct.
The case remains civil, but allegations of this size frequently draw scrutiny from federal law enforcement agencies in addition to financial regulators, legal experts noted. As of this week, no criminal charges connected to the NCUA's complaint had been publicly announced. Court records show both Leigh and Chad Bridges have been served in the civil action.
Jackson Area Federal Credit Union has not publicly detailed the alleged losses, and the NCUA has not disclosed how much, if any, of the money regulators believe can be recovered.
The lawsuit marks the latest step in what is expected to be a lengthy effort by the agency, acting on behalf of the credit union and the National Credit Union Share Insurance Fund, to determine the full extent of the alleged fraud and pursue recovery from those it says were responsible.
CUToday.info has reached out to NCUA for comment.
Originally reported by CU Today.