NCUA Opposes Bridges' Request for Frozen Funds
Federal regulators argue the former Jackson Area credit union leaders should not access retirement money frozen amid a $95 million misappropriation lawsuit.
Updated on Nov. 5, 2026 in Financial Crime
The National Credit Union Administration opposes Leigh and Chad Bridges' request to access frozen retirement funds for living expenses and attorneys' fees. A federal court has ordered an in-person settlement conference for November 9 in Gulfport, Mississippi.
Why it matters
The dispute tests how frozen assets tied to alleged credit union misappropriation can be used for personal and legal costs during litigation. Residents of Mississippi have a direct stake, since the credit union was based in Jackson and the case is being litigated in the state's federal court.
The lawsuit names former CEO Leigh Bridges, her husband Chad Bridges, and former branch manager Tina Funez, and an October 16 settlement conference ended without agreement. A new in-person conference is set for November 9, with sanctions possible for non-attendance.
The players
National Credit Union Administration
The federal agency that regulates and insures credit unions, which placed Jackson Area Federal Credit Union into conservatorship and then liquidated it.
Leigh Bridges
The former CEO of Jackson Area Federal Credit Union, named in the NCUA lawsuit over alleged misappropriation of funds.
Robert P. Myers Jr.
The U.S. magistrate judge who ordered the parties to appear in person for the November 9 settlement conference.
The details
NCUA argues that money withdrawn from retirement accounts would remain subject to the existing asset freeze even if the accounts are protected from seizure, and says the Bridges have not adequately shown why frozen funds should be released. NCUA placed Jackson Area Federal Credit Union into conservatorship in May and liquidated it on September 30, transferring certain assets and liabilities to Five Star Credit Union.
Timeline
May: NCUA placed Jackson Area Federal Credit Union into conservatorship.
September 30: NCUA liquidated the credit union and transferred assets to Five Star Credit Union.
October 16: A settlement conference ended without an agreement.
November 4: NCUA filed its opposition to releasing frozen retirement funds.
November 9 at 1 p.m.: Court-ordered in-person settlement conference in Gulfport.
Legal Context
The case follows the federal conservatorship and liquidation pattern the NCUA applied in earlier credit union failures, where regulators seek to recover misappropriated assets. Whether frozen funds can be used for personal living costs or legal fees is the central procedural question now before the court.
The outcome could determine whether frozen retirement assets are released for living costs and attorneys' fees during the litigation. Credit union members and former members in Mississippi may also see recovery or liquidation outcomes affect how their accounts were transferred to Five Star Credit Union.
The takeaway
The case shows that frozen assets in alleged financial fraud can remain locked during litigation even when retirement accounts are protected from seizure. Readers following credit union matters should watch how the court rules on access requests.
What happens next
A court-ordered in-person settlement conference is scheduled for November 9 at 1 p.m. in Gulfport, Mississippi, where all parties must have full settlement authority.
Further reading
Explore more reporting in the Financial Crime section for context on similar fraud and asset-recovery cases.
Source note: This article includes information reported by CUToday.
