The National Credit Union Administration (NCUA) has issued a prohibition order and a prohibition notice in December 2024. These actions permanently bar two individuals from participating in the affairs of any federally insured depository institution.
The prohibition order was issued against Demetria Baker, a former employee of Lynchburg Municipal Federal Credit Union located in Lynchburg, Virginia. Additionally, Teresa Paulo, who previously worked at Southern Pine Credit Union in Valdosta, Georgia, received a notice of prohibition.
An Order of Prohibition prevents an individual from ever working for a federally insured depository institution. Besides these orders, the NCUA occasionally issues administrative orders under Section 206 of the Federal Credit Union Act. Such orders are legally enforceable and are typically issued when violations of law or regulation occur, fiduciary duties are breached, or unsafe practices are identified within credit unions or by affiliated persons.
Among the most common types of orders from the NCUA are:
- An Order to Cease and Desist: Requires action or restraint from action by an institution or individual.
- An Order Assessing Civil Money Penalties: Mandates payment of assessed penalties by an institution or individual.
The NCUA's enforcement orders and notices can be searched online by name, institution, city, state, and year on their Administrative Orders webpage. This page also links to federal enforcement actions taken by other banking agencies against institutions or affiliated parties.
Public access to these enforcement orders is available online. Copies can also be requested by mail from the NCUA at their Alexandria address.
The NCUA is an independent federal agency established by Congress to regulate and supervise federal credit unions. It manages the National Credit Union Share Insurance Fund with full backing from the U.S., insuring deposits for over 135 million account holders across federal credit unions and most state-chartered credit unions. The agency also focuses on consumer protection and financial literacy education.
For media inquiries regarding this matter, contact Joe Adamoli at JAdamoli@ncua.gov or call 703-518-6572.