MILWAUKEE, Wis. – Fifteen Wisconsin credit unions that were co-owners in the now-defunct Central States Mortgage Co. have filed a lawsuit against its former CEO, Dick Jungen, and others, for what the plaintiffs allege was a secret loan pool that caused losses of as much as $15 million to the company.
According to the Milwaukee Business Journal, credit unions that have filed suit and which were investors in loan pools assembled by Central States include Enterprise Credit Union, Focus Credit Union, Guardian Credit Union, Landmark Credit Union and Prime Financial Credit Union. The suit has been filed in Waukesha County Circuit Court.
Among those also named as defendants is Jungen’s ex-wife, Elaine. In March 2009, employees of Central States arrived at work to find a notice on the door that the business was closed. It was placed into receivership by the Wisconsin Department of Financial Institutions that same month.