FOR FURTHER INFORMATION CONTACTAUSA VICKIE E. LEDUC or MARCIA MURPHY at 410-209-4885

APRIL 18, 2007

ASSISTANT MANAGER OF CUMBERLAND CREDIT UNION SENTENCED FOR MAKING FALSE STATEMENTS TO CONCEAL LOAN DELINQUENCIES

Credit Union Losses Exceeded $500,000

Baltimore, Maryland - U.S. District Judge William M. Nickerson sentenced Richard W. Shives, age 50, of Cumberland, Maryland, today to home confinement for one year with electronic monitoring, followed by 3 years of supervised release, for making false statements to the National Credit Union Administration, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Judge Nickerson also ordered Shives to pay restitution of $250,000.

According to his plea agreement, Shives was the assistant manager of the City, County State of Allegany County Federal Credit Union (CCSAC) in Cumberland, Maryland, overseeing loans and collections, and supervising the tellers. He had been an employee of the CCSAC for about19 years.

To disguise the financial condition of the credit union on delinquent loans to customers, Shives extended the loan due dates and re-financed the loans which were under-collaterized, not collaterized at all, or made to appear collaterized when in fact the collateral had been sold by the customer. Shives made loans to customers whose previous loans were delinquent and who had inadequate credit history. Shives caused reports to the National Credit Union Administration to falsely understate the number and amount of outstanding delinquent loans, and overstate credit union income.

Shives caused credit union members to be unaware of their financial situation. He required CCSAC customers to sign blank loan documents which he subsequently completed whenever those customers became delinquent in loan payments, in order to extend new credit or re-finance old loans. Shives caused customers not to receive quarterly loan statements or delinquent notices, and collection officers not to call delinquent customers.

For 12 credit union members who received special treatment from Shives, losses to the credit union exceeded $500,000.

United States Attorney Rod J. Rosenstein praised the investigative work performed by the Federal Bureau of Investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce McDonald, who is prosecuting the case.