Judge Rejects Liquidating Agent’s Demand For $5M In Employee Dishonesty Coverage

Mealey's (January 20, 2016, 11:09 AM EST) -- CLEVELAND — An Ohio federal judge on Jan. 14 held 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. 11-1739, N.D. Ohio, Eastern Div.; 2016 U.S. Dist. LEXIS 4880).

(Memorandum opinion and order available. Document #13-160121-020Z.)

On April 30, 2010, the National Credit Union Administration Board placed...
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