Members Latest to Sue for New London Security FCU Losses
Five members of the defunct New London Security Federal Credit Union have filed a lawsuit to recoup $4 million claiming board members, staff and the CU's accounting firm among others were negligent in supervising its financial adviser.
The adviser, Edwin Rachleff, was also an investment broker with A.G. Edwards & Sons Inc., which later merged with Wachovia Securities and then Wells Fargo, who handled investments for New London. The CU was declared insolvent and liquidated in 2008 by the NCUA as a result of mismanagement by the deceased Rachleff. The losses totaled nearly $12 million.