Missing Red Flags: Boards Fail to Detect Fatal Internal Fraud

According to NCUA Chairman Rick Metsger, within the past 12 years there has not been a single case of a board member or supervisory committee member detecting the ongoing internal fraud that led to the failure of the institution. In almost every instance, internal fraud has been detected by an examiner, auditor, or outside party. Metsger urged CU Board members to be more active and involved and provided six "red flags" to watch for. [10/16/14]