AEA's financial condition declines

February 6, 2011

AEA's financial condition declines

Posted: Updated:
Frank Ruiz & William Liddle Frank Ruiz & William Liddle

Yuma, AZ February 6 -- Massive loan fraud at AEA Federal Credit Union has erased it's capital, according to the agency that regulates credit unions.

The one-time $410 million dollar credit union is reporting a $31 million dollar loss for 2010. AEA's  net worth is negative 7.63%. Ideally, a credit union's net worth should hover around 8-10%. The Credit union's foreclosures surged to $20.1 million.

AEA was taken over by the National Credit Union Administration in December after its former business loan director, William Liddle, and his wife were indicated by a federal grand jury on charges of making millions of dollars in risky business loans in exchange for more than $1 million in kickbacks.

Local businessman Frank Ruiz was also indicted.

The losses on the loans have pushed the credit union deep into the red for each of the past two years, including a $26 million loss for 2009.

If you're money is at AEA, keep this in mind deposits are federally insured up to $250,000.

 

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