September 21, 2011 - The Office of Financial and Insurance Regulation (OFIR) has prohibited former Shores Area Credit Union Manager David Russell from working in the credit union industry. An OFIR investigation found that during Russell’s management of the St. Clair Shores-based credit union he engaged in unsafe and unsound business practices that resulted in a financial loss for the institution. Russell stipulated to the prohibition order.
“The Michigan Credit Union Act gives OFIR the authority to protect consumers from unscrupulous or unqualified individuals by preventing them from ever working in the industry again,” OFIR Commissioner Kevin Clinton said.
OFIR found that beginning in 2009 Russell engaged in improper loan administration and inadequate financial planning, generated inaccurate financial reports, violated the credit union’s internal policies and failed to comply with state and federal credit union rules and regulations. Russell was dismissed from the credit union in December 2010.
In April 2011, Shores Area Credit Union was acquired by Unity Credit Union in Warren. The merged institution, under appropriate management, has effectively addressed the legacy issues and is safe and sound.
If Michigan consumers have a question, concern or complaint regarding the credit union industry they can call OFIR’s toll-free consumer hotline at 877-999-6442 or visit the agency online at www.michigan.gov/ofir
To view OFIR’s prohibition order, visit: http://www.michigan.gov/documents/lara/David_Russell_-_Prohibition_JW_363667_7.pdf
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