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4 Alabama One Credit Union employees suspended indefinitely in Tuscaloosa

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Four employees were suspended from the Alabama One Credit Union in Tuscaloosa. Source: WBRC video Four employees were suspended from the Alabama One Credit Union in Tuscaloosa. Source: WBRC video
Three state vehicles were parked at the Tuscaloosa credit union on Friday. Source: WBRC video Three state vehicles were parked at the Tuscaloosa credit union on Friday. Source: WBRC video
TUSCALOOSA, AL (WBRC) -

The Alabama Credit Union Administration has suspended four employees with Alabama One Credit Union in Tuscaloosa as part of a fraud investigation.

An interim CEO has been appointed at Alabama One Credit Union according to Larry Morgan, Administrator for the Ala. Credit Union Administration.

The four employees have been suspended with pay indefinitely, Morgan said.

A fraud investigation at a Tuscaloosa credit union is tied to a used car dealer who pleaded guilty to federal fraud charges.

"The reason the credit union has liability for our clients is because they essentially convinced them that [Danny ]Butler was bigger than the credit union," Jay Smyth said.

Smyth is an attorney for six customers who raised concerns about the credit union and are now suing the credit union.

Butler is a former used car dealer who pleaded guilty to federal fraud charges Thursday. In a lawsuit filed in civil court, Smyth claims the credit union encouraged his clients to give money to Butler.

"The deal was get involved with him. Help him reduce his debts, help him reduce the debts he has with the credit union and you'll make some additional money on the interest he pays you," Smyth said.

Butler agreed to work with federal investigators as part of his plea agreement.

"Of course he's remorseful that he committed crimes against the U.S. And further, He has accepted responsibility for his conduct," Max Pulliam said.

An attorney for Alabama One Credit Union says the credit union is disappointed the customers have elected to litigate the dispute in the media, rather than the courts, it is confident the true facts will come out.

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