Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Uninsured depositors file suit in New London closure
NEW HAVEN, Conn. (3/8/11)--Five members who had deposits in the now defunct New London Security FCU filed a lawsuit Thursday in a U.S. District Court in New Haven, Conn., seeking $4 million in damages from the National Credit Union Administration (NCUA). The suit stems from a $12 million embezzlement by the $13 million asset credit union's long-time investment advisor and former A.G. Edwards branch manager, Edwin F. Rachleff. Rachleff, 82, committed suicide while the NCUA was in the processes of closing the credit union in July 2008. An audit revealed Rachleff allegedly stole the investments from 1988 to July 2008. In the suit, the five members allege that NCUA examiners, supervisors and administrators were "negligent in carrying out their ministerial duties and responsibilities" while examining the credit unions' investments. They say they lost $4 million in uninsured deposits and presented their administrative claims to NCUA on Feb. 10, 2010. NCUA denied the claims in their entirety on Aug. 11, 2010, according to the complaint filed Thursday. Filing the suit were Melvin Goldblatt and Joan Lazerow of Connecticut, Mark D. Fetcher, of Florida; Gloria Johnston of California; and Douglas C. Antupit of Connecticut. They also have filed lawsuits against Wells Fargo Advisors, a subsidiary of Wells Fargo & Co., which is a successor in interest to Wachovia and the brokerage firm A.G. Edwards and Sons.


RSS print
News Now LiveWire
Goodwill Industries latest to report data security breach http://t.co/gIaXNsT4Bk
4 hours ago
CUNA economist Schenk discusses regulators' focus on interest-rate risk. See CU Magazine: http://t.co/tW1p9rTSSv
5 hours ago
Fed issues annual report on general-use prepaid cards in gov't-administered payment programs. http://t.co/3zPhejSPZt
5 hours ago
Children in foster care face higher risk of identity theft via @NBCNews http://t.co/Dif0hCfBdA
5 hours ago
.@Cornerstone_CUL's leadership conference includes food drive for San Antonio food bank http://t.co/h2O8O4TxuD
6 hours ago