The FAMU Credit Union is safe!

Ricardo Lewis
Associate Editor

Florida A&M University Federal Credit Union was founded in 1935, by J.R.E. Lee Jr., son of then Florida A&M University president J.R.E. Lee Sr. Since then the not-for-profit credit union has provided over 75 years of banking services for the members of the credit union and has remained a staple in the Tallahassee community.

The recent indictment of the president of the Credit Union, Eugene Telfair, is not a threat to the security and safety of account holders at the Credit Union. According to a press release issued by the U.S. Attorney’s office, a federal indictment was issued on July 7, charging Telfair with conspiracy, theft from an organization receiving federal funds and embezzlement of funds entrusted to a federally-insured credit union.

The Credit Union is charted by the National Credit Union Administration (NCUA), the federal government agency which supervises all federally-insured credit unions. According to the NCUA website, the agency also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), which insures the accounts of millions of account holders in all federal credit unions. The fact that these agencies supervise the Florida A&M University Credit Union can be reassurance to members of the credit union that their accounts are safe. Some members of the Credit Union have decided to rally behind Telfair, in spite of the allegations against him.

“I am one hundred percent behind Eugene Telfair,” said Alexis McMillan, pharmacist and manager of Economy Drugs located on Macomb Street. “I have had nothing but stellar interactions with the Credit Union,” McMillan continued, “and I look forward to staying with and supporting the credit union and Eugene in the future.” McMillan estimates that she has been a member of the FAMU Credit Union for around 20 years.

Another member of the credit union, the Reverend Joseph Wright, echoed McMillan in her support of Telfair and the credit union. “It was 16 years ago that I became a member of this credit union. Eugene, approached me with a program they had at the Credit Union that gave churches the opportunity to be corporate members, not only did we open up the church account but my wife and I opened personal accounts as well,” said Wright, who pastors Jerusalem Missionary Baptist Church. Wright did express concern over what could happen next with the credit union.

“We all know that when things happen at the top of a business it is not long before the entire business feels the effects. Although I know that the board of directors must take some action until this matter is resolved, I would like to think that none of this will have an effect on the business of the credit union,” Wright said.

Florida A&M University Credit Union, despite the name has absolutely no affiliation with Florida A&M University. The Credit Union was once housed on the campus and to this day remains in close proximity to the campus of Florida A&M University, but it is in and of itself a separate entity from the University. While the University has no ties to the Credit Union, they do have an interest in the case. An employee of the University, Robert Nixon was also indicted on the same charges as Telfair.

University Spokeswoman Sharon Saunders issued the following statement: “As you may know, the Credit Union is not affiliated with the University; however, Mr. Nixon is an employee of the University. The University will review this matter as appropriate and will proceed in a manner that is in its best interest.”

In an e-mail received by the Capital Outlook on July 8, Saunders, stated “Mr. Robert Nixon is no longer employed with the University. Charles Evans, professor in the School of Business and Industry, has been appointed interim director for the Small Business Development Center. The University has in place internal controls for all of our financial processes.

Both Nixon and Telfair faced a Federal Magistrate on July 8, and both men entered pleas of not guilty. They were given a trial date of September 7, 2010.