Local Credit Union Target of Federal Probe, CEO Resigns

MARCH 8, 2004 - Posted at 3:31 p.m. CDT

JONESBORO, AR - The head of Northeast Arkansas Federal Credit Union has resigned under auditors' scrutiny.

But the process has been shrouded in secrecy.

Credit Union chief executive Dan Trevathan resigned, but said internal audits of the organization revealed no indication of wrongdoing.  He said the National Credit Union Association asked him to resign.

The association, which ordered the investigation, would not explain why it was checking the books.

A spokeswoman for the association said credit unions are required to file reports and examiners saw some irregularities in Northeast Arkansas' case.  She said the Austin, Texas-based governing body would take, "whatever steps are necessary to implement any changes that are required."

Northeast Arkansas Federal Credit Union has offices in Blytheville, Gosnell, Forrest City and Jonesboro.

(Copyright 2004 by The Associated Press.  All Rights Reserved.)