)
IN THE MATTER OF                       )
                                       ) 
HENRY KUS                              )            
                                       )    No. 93-0201 IV
An Institution Affiliated Party and    ) 
Person Participating in the Affairs    )
of the Pontiac Municipal               )
Employees Credit Union                 ) 
                                       ) 

Pursuant to Section 206(i)(1) of the Federal Credit Union Act, 12 U.S.C. §1786(i)(1), you are hereby notified that you are prohibited from participating in any manner in the affairs of any federally insured credit union. This prohibition results from activities you engaged in during your affiliation with Pontiac Municipal Employees Credit Union. This prohibition is effective immediately upon service. In accordance with Section 206(g)(7)(A) of the Federal Credit Union Act, 12 U.S.C. §1786(g)(7)(A), this Order shall constitute a prohibition from further participation in any manner in the affairs of any federally insured financial institution, or other entity identified therein, without the written permission of the appropriate federal regulatory agency. This Order has been issued based upon the following information.

You pleaded guilty to an information alleging one violation of Title 18, United States Code, Section 1344, financial institution fraud. You were sentenced on September 10, 1992, by the U.S. District Court for the Eastern District of Michigan, to imprisonment for fifteen months and supervised release for three years following release from imprisonment. A copy of the Judgment in a Criminal Case, dated September 11, 1992, is attached to this Order as Attachment 1 and is incorporated by reference herein. Because an appeal has not been filed within the time specified by the Federal Rules of Appellate Procedure, your conviction is now final.

The offense of which you were convicted was committed while you were employed as the manager of the Pontiac Municipal Employees Credit Union of Pontiac, Michigan. The information to which you pleaded guilty alleges that you obtained unauthorized draws on your home equity loan, in direct violation of the instructions by the credit union's board of directors, which resulted in a loss to the institution of $52,000. In addition, the information states that you instructed employees of the credit union not to post share drafts and automatic teller machine activity to your account, resulting in $26,541 of unposted share drafts and $16,340 of unposted automatic teller machine transactions. Your criminal misconduct is more fully described in the information, which is attached hereto as Attachment 2 and is incorporated herein by reference. At the time of your criminal actions, Pontiac Municipal Employees Credit Union was a federally insured credit union.

The offense to which you pleaded guilty involves personal dishonesty and breach of trust. Your continued participation in the affairs of any federally insured credit union may pose a threat to the interests of credit union members and may threaten to impair public confidence in the credit union involved.

Pursuant to Section 206(i)(3), of the Federal Credit Union Act, 12 U.S.C. §1786(i)(3), you may request in writing, within thirty days of service of this Order, an opportunity for a hearing at which you may present evidence and argument that your continued participation in the affairs of any federally insured credit union would not, or would not be likely to, pose a threat to the interests of that credit union's members or threaten to impair public confidence in the credit union. Any such request should be sent to: Secretary of the Board, National Credit Union Administration, Washington, D.C. 20456. This hearing will be held in Washington, D.C., in accordance with Subpart D of Part 747 of NCUA's Rules and Regulations, 12 C.F.R. §747.301 et. seq.

Pursuant to Section 206(k)(2) of the Federal Credit Union Act, 12 U.S.C. §1786(k)(2), any violation of this Order may subject you to a Civil Money Penalty of up to $1,000,000.00 a day for each day said violation continues. In addition, pursuant to Section 206(l) of the Federal Credit Union Act, 12 U.S.C. §1786(l), any violation of this Order is a felony offense that is punishable by imprisonment of up to five years and a fine of up to $1,000,000.00.

This is to certify that I have served the foregoing Order of Prohibition in the Matter of Henry Kus, by depositing the same with the U.S. Postal Service, certified mail, return receipt requested, addressed to Michael Rex, Esquire, 2550 Telegraph Road, Suite 275, Bloomfield Hills, Michigan 48302, the attorney of record for Henry Kus.