UW Credit Union falls victim to fraud scheme
Credit union gets legal counsel
MADISON, Wis. — One of the largest credit unions in Wisconsin has been affected by an alleged fraud scheme involving fake federal loans.
UW Credit Union says it has taken an estimated $13.1 million “loss contingency” charge against earnings. But the Madison-based credit union may not see such a large loss on an investment in what it thought were safe loans backed by the U.S. Department of Agriculture.
The president and chief executive of UW Credit Union said in a statement that there’s still uncertainty regarding the final loss.
President and CEO Paul Kundert said the credit union has “engaged legal counsel” and intends to pursue the recovery of the investment.
The Milwaukee Journal Sentinel reports the credit union will still make a profit this year even with the potential loss charge.
UW Credit Union in the fourth-largest credit union in Wisconsin. It has almost $1.9 billion in assets.
Read UW Credit Union’s full press release here.