A West Virginia credit union under an FBI embezzlement investigation lost its second manager/CEO in the last five months.
Alexandria L. Frangos left for a new job in July, according to Mary Jo Conaway, board chair for the $5.8 million Ohio County Public School Federal Credit Union in Wheeling, West. Va.
Frangos replaced Manager/CEO Kathleen Gramlich, who left on her own accord in March when the news surfaced that the credit union was under investigation.
The FBI investigation was launched after an employee uncovered discrepancies.
At this time, it is unknown how much money was allegedly stolen or who may have been involved in the alleged embezzlement.
Conaway said she does not know when the FBI investigation will be completed.
“The leaving of Ms. Frangos kind of put a monkey wrench into everything and kind of put us in topsy-turvy land,” she explained. “It’s business as usual. We’re just trying to get our bearings back after losing the help that has been here for quite some time.”
Frangos worked for the credit union for five years and served as its member relations employee. She took over the manager/CEO’s job after Gramlich departed.
“We are going to be hiring a new manager and another person in the front office for member relations,” Conaway said. “Everything is stable and we are continuing for normal as we can right now.”
The new manager/CEO will start on Sept. 7. Conaway declined to identify the individual at this time.
“As soon as we have everything is place and have all of our new people, I hope to have an open meeting with all of our members to let them know where we stand and introduce them to our new staff,” she said.
At the end of the second quarter, the 886-member credit union posted a net worth of 15% and an ROAA of -0.96%, according to NCUA financial performance reports.
Ohio County Public Schools FCU also recorded a new income loss of $27,809 at the end of the second quarter and a net income gain of $6,706 at the end of the first quarter.
The credit union also posted a $43,954 under its provision for loan losses at the end of the second quarter, substantially higher than the $1,000 under the provision for loan losses posted at the end of the first quarter.
