School Board VP Under Federal Ban

A Board of Education member who has helped craft the school district’s $60 million budget has been banned from having any participation with federal credit unions, under an agreement to avoid litigation.

Douglas Wild, school board vice president and head of the board’s Finance and Facilities Committee, is bound by the 2006 prohibition order he inked with the National Credit Union Administration, which bars him from participating in any way with federally insured credit unions, according to documents released by the agency. (.pdf document)

The credit union administration – akin to the banking industry’s Federal Deposit Insurance Corporation (FDIC) – struck the deal with Wild after he agreed to step down from his post as chief executive officer of Garden Savings Federal Credit Union, located in Parsippany.

Under the terms of the agreement, Wild admitted no wrongdoing, but consented to leave his post and forgo participation in the federal credit union industry. The ban is indefinite, unless rescinded by the administration.

“Douglas Wild is prohibited from further participating, in any manner, in the conduct of the affairs of any federally insured credit union and any other institution as defined in … the Federal Credit Union Act,’’ the order reads.

The order, which is neither a criminal complaint nor a civil action, does not specifically say why the action was taken, but says that the administration “is of the opinion that grounds exist to initiate an administrative prohibition against Douglas Wild.”

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In a telephone interview Saturday, Wild said he was barred from discussing the specifics behind the prohibition. The credit union administration also has declined to discuss the case in detail.

Wild said no crime prompted his prohibition and that none of the credit union’s customers lost money while he was in charge of Garden Savings.

“It (the prohibition) was an administrative action,’’ Wild said. “There was no criminal activity, and there are no criminal charges.’’

Wild, as head of the board’s finance committee, has had an influence in crafting the board’s 2011-12 budget – a $60,690,000 spending plan to be presented at a public hearing Tuesday.

Wild said that his trouble with the federal agency has no impact on his ability to perform his volunteer position on the board.

“There is nothing preventing me from being on the Board of Education or serving on any committee,’’ Wild said. “One thing has nothing to do with the other.’’

The preliminary budget . The move would save around $1 million,  has said.

Brian Smyth, schools business administrator, and Michael Gross, school board attorney, each rallied around Wild in separate interviews Saturday.

Smyth and Gross, each of whom were hired by the Board of Education, said Wild has been an asset to the school board and that his trouble with the federal agency has no bearing on Wild’s role on the board or on the finance committee.

“I don’t see where there would be an issue,’’ Gross said. “Mr. Wild has been nothing but an outstanding board member.’’

But Tom Coyle,  said he was disappointed to find out about Wild’s previous troubles.

“It’s a shame when seemingly bad things come out about seemingly good people,’’ said Coyle, a supporter of a slate of challengers running for school board.

Coyle, of Rosewood Drive, said he was not sure that Wild’s previous trouble has any bearing on his ability to perform his duties on the finance committee.

“I don’t know if there’s a causal relationship,” he said. “But I think whoever puts the various boards together should certainly have known the liability in that connection.’’