REIDSVILLE, N.C. -- Fourteen investors have settled lawsuits they filed three years ago against American Partners Federal Credit Union and three people connected with it, accusing them of deliberately selling risky investments to benefit themselves and the credit union, according to the Greensboro News Record.
In all, nearly 30 members of the $49 million American Partners FCU claimed to have lost $3 million of their retirement savings through an investment advisor working at the credit union and 14 have filed a lawsuit against both to recover their money.
The 14 plaintiffs invested $1.3 million of their personal retirement savings through David Morgan, an investment advisor with Mariner Financial, who was provided office space and administrative assistance by American Partners, according to Brown v. American Partners FCU filed in the North Carolina Court of Appeals on June 5, 2007.
Starting in the late 1990s, the investments "performed satisfactorily" for a period of time with plaintiffs receiving monthly distribution checks but the checks eventually ceased arriving. The plaintiffs claim that when they asked about the status of the investments, both American Partners and Morgan assured them that the principal was intact, and the monthly distributions would resume shortly. In late 2003, the plaintiffs learned that Morgan was filing for bankruptcy and the company in which their money had been invested, Evergreen, Ltd., had filed for bankruptcy in January 2001.
Terms of the settlement were not disclosed.