Between March and May 2026, the National Credit Union Administration (NCUA) dropped the hammer on five individuals, effectively ending their careers in federally insured financial institutions.
One person was convicted in court, while the other four agreed to consent-based prohibition orders to settle things with the NCUA Board. Think of it as the professional equivalent of being kicked out of the club with no chance of getting back in.
The Conviction-Based Ban
Alan Kaufman, who formerly worked at Melrose Credit Union in Briarwood, New York, was convicted by the United States District Court for the Southern District of New York. His charges? Two counts of receiving commissions or gifts for procuring loans, which violates federal law (specifically 18 U.S.C. § 215(a)(2)). In plain English, he got caught taking kickbacks for helping people get loans.
The Consent-Based Prohibitions
Four other former credit union employees agreed to prohibition orders rather than fight the NCUA’s claims. Here’s the lineup:
- Aaron Steele — former employee of The Police Federal Credit Union in San Bruno, California
- Marilyn Sullins — former employee of Aldersgate Federal Credit Union in Marion, Illinois
- Melissa Biscayno — former employee of Seattle Metropolitan Credit Union in Seattle, Washington
- Christopher Chelette — former employee of Valex Federal Credit Union in Alexandria, Louisiana
Each of these individuals consented to the prohibition orders and agreed to comply with all terms to settle the Board’s claims against them.
What Does a Prohibition Order Actually Mean?
An Order of Prohibition is essentially a career death sentence in the financial industry. It permanently bars someone from working at any federally insured depository institution. No second chances, no appeals to reconsider down the road.
The NCUA’s Enforcement Toolkit
Prohibition orders are just one weapon in the NCUA’s regulatory arsenal. The agency also issues administrative orders — legally binding directives under Section 206 of the Federal Credit Union Act — when credit unions or their employees break laws, violate regulations, breach fiduciary duties, or engage in practices that put institutions at risk.
The three most common enforcement actions you’ll see from the NCUA include:
- Cease and Desist Orders — These require an institution or person to take specific action (or stop doing something), which can include making restitution to those harmed
- Prohibition Orders — The permanent ban from the industry we’ve been discussing
- Civil Money Penalty Orders — Financial penalties that institutions or individuals must pay
Want to See Who Else Has Been Sanctioned?
The NCUA maintains a searchable database of all enforcement orders and notices on their Administrative Orders webpage. You can search by name, institution, city, state, or year. The page also links to enforcement actions taken by other federal banking agencies, so you can see the full picture of regulatory actions across the financial industry.
If you prefer old-school methods, you can request copies of enforcement orders by mail from NCUA headquarters at 1775 Duke Street, Alexandria, Virginia 22314-3428.