The Kansas Department of Credit Unions said today it has taken control of Enterprise Credit Union in Enterprise, in north-central Kansas.
The state regulator said it took control of the $1.8 million, 577-member credit union on Aug. 15, after its board of directors voluntarily transferred control.
The action follows a routine, yearly examination that began on Aug. 8. On Aug. 12, KDCU officials called for a fraud audit.
John Smith,KDCU administrator, said today he's uncertain how long the audit will take.
"Once we get the report of audit we will determine the future of the credit union," Smith said.
Smith said ECU's future could include a liquidation or merger.
Michael Baugh, financial examiner administrator, said that members' deposits are insured up to $250,000.
ECU members can continue to transact business as normal, KDCU said.