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Federal charges leveled in audit from defunct credit union

A Selma man faces federal charges of making false entries in books in the defunct Dallas Educator Federal Credit Union.

Ollis Grayson Jr. of Selma was released on his own recognizance last week after an arraignment in U.S. District Court in Mobile.

The indictment accuses Grayson of falsely entering names in the books for loan applications. An indictment is a formal accusation charging someone with a crime.

Grayson pleaded not guilty to the charge. His trial is set for December. Court records show jury selection is scheduled for Dec. 1.

John Kelly, who represents Grayson with William Faile, said the charges were the final ramifications of an audit in 2003 that turned up some bookkeeping irregularities in loan applications.

The auditors were not the usual ones who had examined the books previously, the attorney said.

Kelly said his client is “well-respected in the community.”

Kelly said Grayson ran the credit union with a small staff and a mountain of federal regulations, which resulted in the irregularities.

“He is not charged with stealing any money,” Kelly said.

The indictment said the incidents occurred from Nov. 29, 2001 until Dec. 8, 2003.

The credit union operated for a number of years until the final audit in 2003, then it shut down, honoring the guarantees on deposits.