Conference 7.286::dcu

296.0. "Warning flags 9 months earlier???" by GUFFAW::GRANSEWICZ (Someday, DCU will be a credit union.) Tue Oct 01 1991 10:56

    
    [Permission to forward and re-post this note is granted.]
    
    There is an aspect to this entire mess that bears close scrutiny.  It
    is, as somebody stated in an earlier note, "What did they know and when
    did they know it?"  "They" being the DCU BoD.  I would also like to ad,
    "And what actions did they take, if any?"
    
    My investigation has revealed some key dates and events:
    
    1. July or August, 1990	-- The first default on the participation loans
    				   occurs.
    
    2. October, 1990		-- DCU Monthly Statement of Condition (Oct,
    				   1990)  DCU shows first property repossession
    				   coming onto books as "Other Assets"
    				   ($1,327,620). 
    
    3. October 25, 1990		-- DCU receives summons from Barnstable
    				   Superior Court attaching funds
    				   held by DCU for Mr. Mangone. (Case
    				   #901366)
    
    4. November 7, 1990		-- Ann McAdoo, Senior Operations Manager
    				   for DCU, responds that Mr. Mangone has
    				   $44.16 on deposit and awaits further
    				   instructions.
    
    5. December, 1990		-- DCU Monthly Statement of Condition (Dec,
    				   1990) DCU reclassifies earlier repossession
    				   from "Other Assets" to "Other Real Estate
    				   Owned".  $5,454,547 is brought onto the
    				   DCU books as "Other Real Estate Owned".
    
    6. March 20, 1991		-- NCUA takes over Barnstable Credit Union.
    				   "Since the takeover, Mangone had been on
    				    vacation and last week requested the
    				    paid leave of absense, Mary Madden,
    				    spokeswoman for the Digital Federal
    				    Employees' Credit Union, siad
    				    yesterday.  The purpose of the leave
    				    was 'to help facilitate the
    				    investigation at the BArnstable credit
    				    union', she said. She said she didn't
    				    know the date of Mangone's request or
    				    how Mangone could help NCUA."
    				    (Source, Cape Cod Times article dated
    				    April 3, 1991)
    
    7. April 5, 1991		-- Mangone is removed as President of DCU.