The National Credit Union Administration on Thursday liquidated the Defense Logistics Federal Credit Union in Dover, New Jersey.
Pentagon Federal Credit Union immediately assumed the credit union’s assets, shares and loans.
The NCUA said it made the decision to liquidate after determining that the credit union engaged in unsafe and unsound practices.
At the time of its liquidation, Defense Logistics served 219 members and had assets of about $506,000, according to the credit union’s most recent Call Report. The credit union was chartered in 1959; it served civilian and military personnel of the Defense Contract Administration Services District-Newark and the Defense Contract Audit Agency of Northern New Jersey.
In 2019, the NCUA issued a cease-and-desist order requiring the bank to take several actions, including the adoption of a Bank Secrecy Act policy, the hiring of an independent third-party company to complete a BSA audit and a third-party firm to verify credit union member accounts. The agency also required the credit union to revise its concentration risk policy by establishing concentration limits for each loan category.