Judge Will Order Settlement Conference in NCUA Fraud Case
A federal magistrate set an October 16 conference to address a $95 million fraud case against three individuals.
Updated on Sept. 21, 2026 in Financial Crime
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A federal judge has ordered a settlement conference for October 16 regarding a civil case filed by the NCUA against three defendants. The agency alleges that $95 million was misappropriated from the Jackson Area Federal Credit Union.
Why it matters
The settlement conference marks a procedural step in the recovery process for the Jackson Area Federal Credit Union, which the NCUA placed into conservatorship on May 6 due to the alleged financial malfeasance.
The litigation involves allegations against Leigh Bridges for $73.3 million in losses and attempted redemption of $200,000 in rewards points. Other assets include an $88,275 Cartier watch and luxury goods currently under dispute.
The players
NCUA
The National Credit Union Administration is the federal agency responsible for overseeing and liquidating credit unions.
Leigh Bridges
Leigh Bridges is a defendant in the federal civil suit facing allegations of fraud and breach of fiduciary duty.
Magistrate Judge Myers
Magistrate Judge Myers is the presiding official overseeing the settlement conference process in the civil litigation.
Chad Bridges
Chad Bridges is a defendant named in the agency's effort to unwind alleged fraudulent transfers.
Tina Funez
Tina Funez is a defendant identified in the complaint regarding the recovery of allegedly misappropriated funds.
The details
The NCUA lawsuit includes claims of fraud, conversion, and breach of fiduciary duty against Leigh Bridges, while seeking to unwind transfers involving Chad Bridges and Tina Funez. All parties must provide a confidential memorandum and appear in person with full settlement authority.
Timeline
May 6: The NCUA placed the Jackson Area Federal Credit Union into conservatorship.
September 18: A court notice was issued regarding the upcoming settlement conference.
September 30: The deadline for attorneys to submit their confidential settlement memoranda.
October 16: The settlement conference will be held before Magistrate Judge Myers in Gulfport.
Legal Context
This litigation follows the pattern of federal recovery efforts seen in the 2026 Jackson Area Federal Credit Union conservatorship. The case mirrors standard federal agency attempts to claw back assets in instances of alleged institutional fraud.
The conservatorship and subsequent lawsuit may impact members of the Jackson Area Federal Credit Union as the agency works to resolve the institution's financial status. Residents should remain updated on official NCUA notices regarding access to accounts and credit union services.
The takeaway
This case highlights the intensive oversight processes federal regulators employ when significant losses are discovered within a member-owned institution. Members of credit unions should stay informed about the health of their financial institutions by reviewing periodic public disclosures.
What happens next
Attorneys are required to file their confidential memoranda by September 30, ahead of the October 16 settlement conference.
Further reading
For more information on the ongoing litigation, visit the Financial Crime section.
Source note: This article includes information reported by CUToday.
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