NCUA Named as Latest Defendant in New London Security Federal Credit Union Legal Disputes
More than two years since New London Security Federal Credit Union was liquidated after alleged investment fraud led to its collapse, a number of lawsuits are still pending to recoup nearly $12 million in losses with the latest naming the NCUA as a target.
In July, five persons filed a motion in the U.S. District Court in Bridgeport, Conn., claiming the NCUA was negligent in oversight of New London, which lost nearly $12 million after financial advisor Edwin Rachleff, now deceased, allegedly committed fraud with the CU's investment accounts.
Reardon said most of the five plaintiffs are retired and live on limited incomes. Two are over 70. For those reasons, he said, he is seeking an expedited jury trial.
"They could certainly use these funds and always intended to use these funds to support themselves in their retired years," he told theday.com