Credit Union’s Directors Knew Of Employee Dishonesty Well Before Bond Was Issued
(May 19, 2017, 12:25 PM EDT) -- CINCINNATI — A majority of the Sixth Circuit U.S. Court of Appeals on May 18 affirmed a lower federal court’s ruling that the liquidating agent of an insolvent credit union is not entitled to $5 million in employee dishonesty coverage under a fidelity bond issued to the credit union for losses arising from an employee's alleged fraudulent scheme (National Credit Union Administration Board v. Cumis Insurance Society Inc., No. 16-3140, 6th Cir.).
(Opinion available. Document #13-170601-010Z.)
On April 30, 2010, the National Credit Union Administration Board...