Shelley M. Holden, president/CEO of the $61 million Tewksbury Federal Credit Union, was placed on administrative leave after the board of directors in early December became aware of irregularities in several accounts including those held by Holden and her personal acquaintances, according to a statement from the board of the Tewksbury-Mass.-based credit union.
The board hired an accounting and auditing firm to investigate these irregularities. By mid-December, the credit union was contacted by the NCUA, which received a complaint about these same irregularities, according to a TFCU board statement.
“The credit union has cooperated fully with the NCUA,” the board stated. “Additionally, the board placed Holden on administrative leave. Following an NCUA recommendation, the credit union retained another accounting and auditing firm to perform a forensic audit of the accounts in question, and a review of the credit union’s practices and procedures. Once the board has reviewed the auditor’s final report and recommendations, it will take appropriate action.”
The board’s statement comes after local media reports on Feb. 2 and Feb. 9. According to Tewksbury Patch, a local online news site, a contract employee, an Illinois-based debt collector, claimed that Holden allegedly transferred $12,000 and $16,000 into his dormant account. She then transferred that money into the account of her boyfriend who allegedly has a felony criminal record.
The debt collector was identified in the news reports as Rod Morrison, who reportedly manages delinquent accounts for credit unions across the nation under the name of Jack Horowitz.
Horowitz also claimed Holden told him late last year that after she transferred the money in his account, she also changed the mailing address on the account so that the statements would be delivered to her, according to the Tewskbury Patch articles. Horowitz said he opens accounts at credit unions he works for, but he has not used his TFCU account for several years.
CU Times was unable to reach Horowitz and Holden for comment.
TFCU declined to comment about the published reports.
The one-branch credit union that serves more than 4,300 members appears to be well capitalized with a net worth of 11% over the last five years, according to NCUA financial performance reports. However, the credit union’s ROAA has declined from 1.10% in 2013 to 0.28% at the end of last year.
And while TFCU’s total loans have increased from $30.5 million in 2013 to $40.8 million in 2017, its net income has steadily slipped from $553,006 in 2013 to $170,381 in 2017, according to NCUA financial performance report.
Holden is the daughter of the late Kenneth Holden who was named the credit union’s CEO/treasurer in 1980. When he stepped down in 2000, his daughter was appointed CEO/president. She began working at TFCU as a teller in 1987 and later became operations manager.
