District Judge Confirms MDG Reporting on Whitefish Credit Union’s Potential Crimes

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The ongoing investigation into fraud by Montana’s largest credit union (Here and Here) gained even more momentum recently after our reporter spoke by phone with sitting District Judge, Honorable James A. Manley, regarding his views on the Thornton case, among others.

The Honorable James A. Manley – Montana District Court Judge (20th District)

Although the conversation with Manley was understood to be “off-the-record,” (and we will not cite him) he did point our reporter to a deposition he gave for a different case against Whitefish Credit Union (WFCU) by Deanna McAtee, whose unbelievable story will be a topic of a future article.

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Manley, who was appointed by former Governor Steve Bullock, confirmed, in his deposition, earlier reports posted by Montana Daily Gazette that outlined several instances of unethical, and apparently criminal, behavior by WFCU against its members, specifically its Business Members.

A portion of Manley’s testimony closely resembles that of NCUA investigator Allen Carver who stated in his final report that WFCU decided to stop lending money but without notifying borrowers of their intent to do so.

Borrowers with Member Business Loans were not notified by WFCU that they would not be loaning any more money on development loans, including existing loans. Allen Carver – NCUA Regional Director (Retired)

Manley, when questioned during his deposition, came up with a very similar answer to Allen Carver.

Q (BY MR. SIMPSON) The same thing with Thornton.

Was there a default involved in the Thornton case, or was there just a failure to fund a further development?

Manley:  Yeah. It was like a three-stage development, they had funded first stage or whatever, and Thornton had done everything he was supposed to do, and then 2008 happened that Whitefish Credit Union changed their policy, decided we’re not loaning any more construction money, and they were going to handle these by foreclosures. And so he had a development that was half finished that was unsaleable.

You can read Judge Manley’s Full Deposition by Clicking Here

As the investigation continues into what, by all accounts, appears to be an organized crime ring including judges, attorneys, WFCU employees, WFCU management, and even WFCU board members, keep an eye on Montana Daily Gazette for all of the latest news and information regarding the ongoing investigation into WFCU fraud.

Jim White of Montana Gazette Radio has been following this story for over 2 years and covered much of what has been written here today on his latest broadcast. To get his report, click the video link below.




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