The National Credit Union Administration (NCUA) has permanently prohibited Luz Araceli Davila-Hernandez, a former employee of Magnifi Financial Credit Union in Melrose, Minnesota, from participating in the affairs of any federally insured depository institution. This action was taken through an Order of Prohibition.
An Order of Prohibition bars an individual from ever working for a federally insured depository institution. The NCUA also issues other administrative orders under Section 206 of the Federal Credit Union Act when it determines that a credit union or its affiliates have violated laws, rules, or regulations; breached fiduciary duties; or engaged in unsafe practices.
The three most common types of orders issued by the NCUA include:
– An Order to Cease and Desist, which requires an institution or individual to take or refrain from certain actions, including making restitution.
– An Order of Prohibition, which prevents an individual from working for any federally insured financial institution.
– An Order Assessing Civil Money Penalties, which mandates that an institution or individual pay a specified penalty amount.
Agency enforcement orders and notices can be searched by name, institution, city, state, and year on the NCUA’s Administrative Orders webpage. This webpage also provides links to federal enforcement actions taken by other banking agencies against institutions or their affiliates.
The public can view NCUA enforcement orders online or request copies by mail from the NCUA at 1775 Duke Street, Alexandria, Virginia 22314-3428.
The NCUA is an independent federal agency established by Congress to regulate, charter, and supervise federal credit unions. It operates and manages the National Credit Union Share Insurance Fund with the backing of the full faith and credit of the United States. This fund insures deposits for more than 135 million account holders in all federal credit unions and most state-chartered credit unions. Additionally, the NCUA works to protect consumers and educate them on consumer protection and financial literacy issues.
For media inquiries:
Joe Adamoli
JAdamoli@ncua.gov
703.518.6572
