An alleged Georgia real estate broker has blocked an NCUA investigation into the preserved community-owned federal credit union in Charleston, South Carolina, by failing to produce documents despite a subpoena and court order, have showed recent filings in a US district court in South Carolina.
The NCUA began investigating the credit union in September 2020 and issued a subpoena to Vincent Terry a month later that demanded that he turn over documents. The independent federal agency alleged that Terry was the CEO of a CUSO for the Westminster Mortgage of America (WMOA) credit union, which generated an “alarming number of highly questionable loans“, and that most of these loans are suffering.
In early 2019, Terry introduced himself to the credit union stating that OMMO would take out COFCU loans and that National Direct Mortgage agreed to purchase all of these loans. This meant that the initial financing of these loans by the credit union would be fully repaid and its financial risk would be negligible, according to the NCUA.
Terry’s claims were false and neither he nor the OMA held valid licenses to underwrite or sell mortgages in the secondary market, the NCUA alleged in court documents.
Additionally, Terry later admitted to the COFCU Board of Directors that he and OMMO had largely generated and / or taken out unsecured loans for himself, his relatives, associates and friends. . Almost all of the loans are in default and none of the loans have ever been taken over by National Direct Mortgage or any other legitimate entity, the NCUA alleged.
Initially, through his lawyer, Terry said he would hand over the documents, but later said he did not have certain papers or was unaware of the documents the NCUA was looking for. In response to the NCUA subpoena for loan documents generated by Terry, he claimed that he did not take out any loans.
“We oppose the claim regarding all loans generated by Dr. Terry as being too broad and irrelevant to the CO Federal Credit Union,” Terry’s attorney wrote in a letter to the NCUA in December 2020 .
Although the NCUA did not disclose the number of loans or their total value allegedly generated by Terry, the write-offs on first mortgage / line of credit home loans amounted to $ 730,200 and $ 142,157 in write-offs for all others. loans, for total write-offs. of $ 872,357, according to the COFCU appeal report for the first quarter of this year.
The credit union recorded a loss of $ 457,207 at the end of 2020 and a loss of $ 741,074 at the end of the first quarter of this year, according to NCUA financial performance reports.
Last January, the federal agency placed the $ 4 million COFCU under trusteeship. A month later, through the United States attorney’s office in Charleston, South Carolina, the NCUA applied to a federal judge for a court order to enforce the NCUA subpoena. In late February, U.S. District Court Judge Richard M. Gergel granted the court order, which was delivered to Terry’s homes in Atlanta and Hampton, Georgia.
There is no indication that Terry responded or complied with the court order to submit the documents required by the NCUA subpoena.
Terry and his lawyer did not respond to CU time‘requests for comment Tuesday.