NCUA Prohibits Two Individuals from Participating in the Affairs of Any Federally Insured Depository Institution

The National Credit Union Administration in July 2024 permanently prohibited two individuals from participating in the affairs of any federally insured depository institution.

Prohibition Orders:

• Jose Prado-Valero, a former employee of Financial Center First Credit Union in Indianapolis, Indiana

• Tracy H. Thibodeau, a former employee of Vermont VA Federal Credit Union in White River Junction, Vermont

An Order of Prohibition prohibits a party from ever working for a federally insured depository institution.

In addition to Orders of Prohibition, the NCUA, on occasion, issues administrative orders, which are formal, legally enforceable orders issued pursuant to Section 206 of the Federal Credit Union Act. Generally, the NCUA issues administrative orders when it finds that a credit union — or persons affiliated with a credit union — have violated a law, rule, or regulation; breached a fiduciary duty; or engaged in an unsafe or unsound practice.

The three most common orders issued by the NCUA include:

• An Order to Cease and Desist, which requires an institution or individual to take action (or refrain from taking action), including making restitution;

• An Order of Prohibition, which prohibits an individual from ever working for a federally insured financial institution; and

• An Order Assessing Civil Money Penalties, which requires an institution or individual to pay an assessed penalty amount.