RALEIGH, N.C.-Former directors of Greater Kinston CU are challenging the state's February conservatorship of their $17-million community development credit union amid allegations of impropriety by the board members.

The North Carolina CU Division took over the CDCU Feb. 5 after an investigation showed six of its seven board members-as well as CEO Jennifer Howard-also served on the boards of the Kinston Charter Academy and the Greater Kinston Community Development Center, which received hundreds of thousands in loans from the CU. Court records indicate the outstanding balance on the loans was $701,000, exposing the GKCU to a potential loss of $1.3 million.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.