Jackson Jambalaya

 More shots were fired over Leigh Bridges' $2 million Eastover home in federal court Friday. The National Credit Union Administration Board wants the title to the Sleepy Hollow Drive residence.  Leigh and Chad Bridges want to keep it.  

Leigh and her husband Chad stand accused of embezzling over $50 million from her former employer, Jackson Area Federal Credit Union.  She was the President of the credit union until fired in April for  alleged embezzlement. A synopsis of the case is posted below. 

National sued the Bridges in U.S. District Court in May in an effort to claw back ill-gotten gains. The Court froze the couple's assets at the plaintiff's request.  

The plaintiff asked the Court to give it a trusteeship over the Bridges' homes at  3826 Sleepy Hollow (Jackson), 2085 Great Southern Road (Hazelhurst), 29500 Perdido Beach Boulevard Apt. 702 (Orange Beach, AL), and 257 Eastbrook Street (Jackson).  The couple owns another home on the Honduran island of Utila.  The motions make no mention of the Honduran home where the Court likely has no jurisdiction.  The court file is published at the bottom of this post.  

The plaintiff took out an insurance policy for the Sleepy Hollow residence and its contents through Lloyd's of London.  National said it is spending $3,600 per day for "24/7 armed security" at the Sleepy Hollow residence to comply with the policy.  The Court allowed National to inventory the items in the home and remove them to a secure location.  The plaintiff did so but the infamous Steinway piano  and other property remain at the home.  NCUAB states it can not exclude people from the residence and reset the alarm without title to the property.  

The home soon became the site of a meeting engagement between the Bridges and National's attorney, Alysson Mills. 

 The attorney arguing appointing National as trustee will allow it to take possession of the property and discontinue the expensive security service.  NCUAB spent $225,652 on security as of August 20.

The Bridges said not so fast, my friend, as they filed objections.  Chad argued National was trying to get title to the property by trampling his rights: 

National seeks a sweeping remedy—the outright transfer of real property titles via quitclaim deeds—under the guise of an equitable “trusteeship.” It does so without proving, or even alleging, any active wrongdoing by Chad, whom National itself has characterized as a “mere title holder."..... (The response later claims "National admits that Chad committed no active fraud or wrongdoing.) 

Now, it is trying to leverage this situation to force Chad into signing away vested property rights and by cutting off his ability to maintain himself, hold his property, or fund his legal defense. National’s Motion should be denied as to its request for an order compelling the outright conveyance of the Bridges’ real property assets.

 The property is vacant because National asked Leigh to move out of the home.  National then claims the vacancy is an emergency - an emergency it created. Calling National a "pre-judgment creditor,"  Chad claims National has no right to "acquire title" to the home before a trial just because it wants to do so. The preliminary injunction protects National's interest by prohibiting any transfer of the home. The plaintiff did not even try to obtain vacant home insurance, a cheaper option than paying a quarter of a million dollars for security. 

Chad also refused to agree to a trusteeship while his trust funds and assets were frozen.  

  Leigh accused National of wasting money.  She points out the property is fenced and has Ring video cameras.  The home is insured for $2.1 million. She argues in her response "Under these circumstances, NCUAB’s unbelievable expenditure of $225,652.50 was unnecessary, wasteful, and wholly unwarranted."

National said balderdash. Security was 

 Security was necessary due to the value of the items on the property and lack of sufficient insurance on those items. Leigh Bridges estimated the items’ value at $15 million, but the value could be higher. When Leigh Bridges gave the NCUAB permission to take custody of the items, security became necessary to protect against catastrophic loss, particularly considering the media coverage of the Sleepy Hollow residence.

The reply claims the Bridges stopped cooperating and did not provide security codes or the ability to use the Ring cameras to the plaintiff. 

National argues the Bridges' defense mean little when "a property is purchased with stolen funds." Such property likely includes the Sleepy Hollow residence.  The Bridges purchased the home in 2018, four days after Leigh wired $1.227 million from Raymond James to a real estate closing attorney.  

Mills continued her skewering of the Bridges:  

JAFCU records show that many transfers were made from Chad and Leigh’s JAFCU account to Raymond James. And there were over $51 million in false entries concealing transfers from the JAFCU general ledger to the JAFCU accounts of Leigh Bridges going back to 2015. The evidence strongly suggests that the Sleepy Hollow residence was purchased with misappropriated funds and is therefore held in constructive trust for the benefit of JAFCU.

 National points out without title it can not "exclude" people from the property unless it has title.  

The case is assigned to U.S. District Judge Daniel P. Jordan, III. 

Kingfish note: There is a much better solution for this problem.  One that is much cheaper.  Simply have the Kingfish housesit the place.  No cash payments required, just a weekly shipment of three cases of beer.  

Synopsis

Leigh Bridges is the former President of the Jackson Area Federal Credit Union.  She became President of the credit union in 2021 after serving as CFO.  The President signed all financial statements and handled all account reconciliations for wire transfers.  The National Credit Union Administration Board terminated Bridges after it uncovered the alleged embezzlement. The credit union accused her and her husband Chad of embezzling between $55 and 95 million.   

NCUAB sued the Bridges in May. U.S. District Judge Daniel P. Jordan, III issued a temporary restraining order against the Bridges in May and froze all assets at the request of the plaintiff.  

The complaint claims Leigh Bridges doctored the books while looting her employer of tens of millions of dollars.  NCUAB alleged Leigh made bogus automated clearing house entries, wired large sums of money to her personal accounts as well as luxury retailers such as Tiffany's, and made fraudulent entries in the general ledger.  The couple used their share accounts at the credit union to further the alleged fraud.  Their lifestyle was so posh Mississippi Magazine featured their home.

The parent credit union accused Leigh of making over $51 million in false entries in the couple's share accounts from 2015 to 2026.  (Read the complaint as it spells out in great detail how the money was spent.  Earlier post with copy of complaint and list of the loot.) 

Judge Jordan issued a preliminary injunction freezing the Bridges assets in July.  NCUAB is the trustee for the assets and is allowed to seize any asset it determines were purchased with stolen funds. 

The complaint charges the Bridges with  fraudulent misrepresentation (Leigh),  Fraudulent misrepresentation - financial transactions (Leigh), conversion of JAFCU funds (Leigh) , Breach of fiduciary duty (Leigh), personal liability under 12. U.S.C. 1787 (Leigh), Fraudulent transfers (Leigh),  Fraudulent transfers (Chad), Enforcement of constructive trust (Both defendants), 

Mills added Tina Funez as a defendant in June. Employed at JAFCU since 2006, Funez became a branch manager in 2023.  How did Funez figure into the alleged scheme?  Keep reading.  

The Loot

* $15 million to pay personal credit card bills from January 2025 to March 2026.  The payments included $14.4 million to American Express, $531,444 to Apple Card, and $68,871 to Chase card. 

* $3.3 million for purchases at Brooks Collection, a Jackson luxury jewelry and handbag store.  December 2022 to March 2026

* $906,704 to Craig Wilkinson Inc, a construction company.  July 2019 to July 2024

* $250,184 to Courtney Peters Interior Design. July 2019 to January 2024

* $129,300 to purchase a Steinway piano. March 2019 to March 2026. 

* $127,870 for two Mercedes-Benz vehicles in 2019 and 2020

* $45,956 to Brown Fine Arts from March 2019 to March 2026

* $84,325 to Cox Pools from March 2019 to March 2026

* $273,400 to Coinbase Global in 2021

* $295,000  to Joseph Gad Inc. a luxury diamond & colored gemstone jeweler in New York City.  January 2021 to March 2026

* $66,571 to purchase a Tesla in March 2023

* $41,500 to Graziela Inc, a luxury jewelry in Illinois

* $378,780 to Tiffany (of course) in New York City in April 2024

* $20,130 to Chung P. Luk in Hong Kong in August 2023.  

* $617,507 to Premier Prive in Palo Alto, CA.  Used to purchase jewels from luxury jeweler Circa Jewels. January 2021 to March 2026

* Funds used to purchase, furnish, and improve home at 3826 Sleepy Hollow in Jackson, 2085 Great Southern Road in Hazlehurts, 257 Eastbrook St. in Jackson, and of course, 29500 Perdido Beach Boulevard Apartment 702 in Orange Beach. 

* $13.8 million to Chad Bridges from May 2019 to May 2026. The money was used to fund several of the purchases above.  

* $200,000 transferred to Leigh's family members through Chad's share account.