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.
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"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.