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 accounting firm that reviewed the financials and performed audits of the defunct New London Security Federal Credit Union's records has denied claims that it failed to detect fraudulent activity, an allegation made by NCUA in a March 19 complaint.
In response to an NCUA complaint, the auditors for New London Security Federal Credit Union have denied claims of professional malpractice for the cooperative that was liquidated in 2008.
Nearly two months after the NCUA filed a suit against Wells Fargo for negligence in the case of a deceased financial adviser, the agency has filed a complaint against the CU's accounting firm to recover losses.
The NCUA has moved forward filing a suit to recover $12 million from the defunct New London Security Federal Credit Union after discussions to reach a settlement fell through.
Since discussions to settle a case involving an $11.8 million loss from the defunct New London Security Federal Credit Union fell through, the NCUA has moved forward with a suit to recover the misappropriated funds.