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Huron River Area CU liquidated by NCUA

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ALEXANDRIA, Va. (11/19/07)-- The National Credit Union Administration (NCUA) announced Sunday that it has liquidated Huron River Area CU of Ann Arbor, Mich. and that the credit union’s members’ accounts were purchased and assumed by Detroit Edison CU of Detroit. The purchase by Detroit Edison ensures Huron River members uninterrupted credit union service. The NCUA began overseeing the operations of Huron River in February 2007 when the Michigan Commissioner of the Office of Financial and Investment Services placed Huron River Area into conservatorship. The action was taken to protect member assets while addressing operational issues within Huron River. A lawsuit was filed earlier this year against the $362 million-asset credit union and a homebuilder, First Home Builder, alleging fraud in the way their home construction loans were set up. In March, Jason Stewart Dodge, 31, of Plymouth, Mich., a former manager of Huron River, was arrested and accused of making fake loans in members' name to cover about $90,000 embezzled during the past two years, according to reports at the time. In July, Dodge pleaded no contest to embezzling less than $50,000 from the credit union. He also pleaded no contest to two counts of identity theft. After earmarking more than $61.5 million to cover the potentially bad loans it had issued, the Michigan credit union reported a $58.9 million loss for the six-month period ending June 30. Huron River Area's assets dropped to $268 million at that time. Detroit Edison CU is a state-chartered, federally insured institution chartered in 1944. The NCUA announcement noted that it is a full service, $485 million-asset credit union with more than 27,000 members primarily located in southeastern Michigan. DECU members have access to 77 service center branches in Michigan, with thousands of additional locations across the U.S, and it offers free ATM service at over 25,000 locations. The NCUA reminded member that accounts are insured to at least $100,000 while IRA and KEOGH retirement accounts are insured up to $250,000 under coverage provided by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. Government.