AEA Federal Credit Union in Yuma, Ariz., announced today it hasbeen notified that the FBI has filed criminal charges with the U.S.Attorney's Office alleging fraudulent actions on the part of itsformer vice president of business services.

The $309 million CU said William (Bill) Liddle was involved inalleged unlawful actions while he was working for AEA. According toa statement from the CU, Liddle was hired by AEA in November of2004 to develop and manage a business services program based on hisformal education and professional expertise in commercial lendingand international business. Liddle resigned from his position inDecember of 2009 to manage his business, Desert Capital AdvisorsLLC.

AEA said inconsistencies detected following Liddle's departureprompted an audit of business lending activities conducted by anexecutive committee appointed by AEA officials.

"The committee's research into certain specific borrower's loansrevealed numerous infractions by Mr. Liddle of AEA's policies andprocedures which substantially impaired AEA's business loanportfolio," the CU said. "It is believed that alleged actions ofMr. Liddle were structured to elude detection by both internal andexternal auditing entities."

Denise Sweet-McGregor, interim CEO of AEA, said, "While wecannot formally comment on Mr. Liddle's guilt or innocence at thistime, we strongly believe the facts will bear themselves throughthe judicial process."

AEA business loan losses caused a drop in capital, prompting theNCUA to require preparation of a five-year net worth restorationplan, Sweet-McGregor said. The CU also had to close one branch andreduce staff by more than 35%.

"Without the alleged fraudulent and reckless behavior whichcontributed to the majority of our business loan losses, AEA wouldhave navigated this economic recession relatively unscathed,"Sweet-McGregor said. "We now need to move beyond this unfortunatesituation using what we have learned to grow stronger for ourmembers. The current strategies we have put in place are a positivefirst step."