An independent federal agency now has control of Clarkston Brandon Community Credit Union while an embezzlement investigation remains ongoing.
Antothy LaJoice drew nationwide attention last week when he confessed to taking $20 million from the community bank.
According to a statement released by the bank, a routine audit raised red flags about transactions a day before he turned himself in on Jan. 6. He was questioned by bank officials, the next day he did not show up to work, and he was fired.
The Michigan Department of Insurance and Financial Services (DIFS) sent credit union regulators to take over CBCCU, which lists $68.8 million in assets.
‘All of the 9,400 CBCCU members should be assured all of their deposits are protected and they will have continued, uninterrupted access to their funds,? said DIFS Director Patrick M. McPharlin. ‘All Michigan state-chartered credit unions are insured by the NCUA for up to $250,000 per depositor and sometimes more.?
CBCCU will continue regular hours under management of the National Credit Union Association, NCUA, McPharlin said.
John Fairbanks, public affairs specialist with the Office of Public and Congressional Affairs, said member accounts are secure, but any further information is confidential.
In other cases when the NCUA takes control of a bank, the agency can stabilize or merge it with another institution. If a merger occurs, a new bank will assume all loans, Fairbanks said.
The bank, established by a group of Clarkston Community School teachers in 1957, serves Oakland, Genesee, Lapeer, Livingston and Macomb counties. LaJoice is charged with 14 counts of embezzling over $100,000. An investigation is ongoing and is being handled by the Oakland County Sheriff Special Investigations Unit.