NCUA Seeking Millions From the Former CEO for Breach of Duties
ALEXANDRIA, Va. (April 24, 2023) – The National Credit Union Administration Board has filed charges against Jeffrey B. Moats, former chief executive officer and board member of Edinburg Teachers Credit Union (ETCU), for knowingly and intentionally violating the law, breaching his fiduciary duties, and knowingly causing a substantial loss to ETCU exceeding $4,000,000.
The NCUA is seeking restitution of at least $4 million to Edinburg Teachers Credit Union and a civil money penalty of $1 million.
The four-count notice of charges (opens new window) was filed with the United States Office of Financial Institution Adjudication. In its filing, the NCUA alleges that Moats, without board approval, directed ETCU staff to transfer large sums to him in connection with purported retention bonus or supplemental employee compensation plans that were never discussed nor approved by the board of directors. Moats also without board approval directed ETCU employees to fund his retirement account wholly from ETCU funds, in contradiction to the retirement plan’s terms. Additionally, Moats directed ETCU staff to pay him $220,000 for accrued, unused vacation time in the absence of any ETCU policy permitting such payment without board approval. Finally, Moats, without authorization, caused ETCU to pay car insurance premiums on his personally owned vehicle for a number of years.
Moats joined Edinburg Teachers Credit Union as its CEO in 1995 and became a member of the board in 2012. On March 26, 2021, the Texas Credit Union Department conserved Edinburg Teachers, appointed the NCUA as Agent for the Conservator, and NCUA removed Moats from his positions as CEO and board member. Edinburg Teachers Credit Union was released from conservatorship and returned to the control of its members on January 27, 2023.