NCUA charges former Melrose CEO

Wielding an infrequently used authority, the NCUA has filed administrative charges against Alan S. Kaufman, former chief executive officer, treasurer, and board member of Melrose Credit Union, Queens, NY. The NCUA is seeking a prohibition order against Kaufman and is requesting he be ordered to pay restitution of at least $3.5 million.and a civil money penalty of $1 million. A seven-count notice of charges was filed alleging that Kaufman breached his fiduciary duties to Melrose by placing his own interests above those of the credit union, that he engaged in unsafe or unsound practices, and that he violated applicable laws and regulations. The notice further alleges that Kaufman benefited from his actions and that he caused “severe financial loss” to Melrose.