The federal government is dropping their case against a former board member of the Edinburg Teachers Credit Union, stating he was cooperating with their request for records.
In court filing earlier this week, the federal government stated that the former board member, Brian J. Warren, “has produced some materials pursuant to the (National Credit Union Administration Board)’s subpoena and has engaged in productive discussions with government counsel regarding the next steps to collect additional documents.”
The National Credit Union Administration, an independent federal agency, initially filed a petition against Warren in June in hopes that a federal judge would compel him to turn over documents they had requested through a subpoena they issued to him in April.
Warren, who served as board secretary, claimed he did not have documents requested in the investigative subpoena, according to the petition, and wrote to the NCUA in an email on May 11 that it was board policy to “destroy documents at the conclusion of any board meeting. This was done to protect the information of the members.”
In his third attempt to get Warren to comply with the subpoena, enforcement counsel for the NCUA, Bruce Heygi, wrote in an email:
“In a final effort to avoid the need to file a legal action in Federal Court against you, please be advised that we are aware (without limitation) that:
>> You had a personal financial relationship with (President and CEO) Jeffrey Moats; that he made you at least one $10,000 personal loan, with regard to which you made monthly payments to him over several years;
>> Mr. Moats and various (former) Board Members frequently engaged in text communications and/or email communications before and/or after March 26, 2021; and
>> Mr. Moats made regular cash gifts and/or other gifts to the various (former) Board Members.”
The investigation into the Edinburg Teachers Credit Union began on March 10 when it was launched by the NCUA’s general counsel and on March 26, the Texas Credit Union Department appointed the NCUA as the credit union’s conservator.
In their motion to dismiss the case, the government acknowledged the possibility that they and Warren could reach a disagreement in the future.
“Although it remains possible that the parties could reach an impasse down the line, there is presently no need for the Court’s intervention,” they wrote.