REIDSVILLE, N.C. — American Partners Federal Credit Union said it is "confident" that it "did nothing wrong" in a case involving members who have filed a lawsuit over $1.3 million in investment losses.
Fourteen members of the $51 million credit union are suing the financial institution, its CEO, Dorinda Simpson, now retired vice president Ann Boone and David Morgan, an investment advisor with Mariner Financial claiming that they lost $1.3 million of their retirement savings through investments overseen by Morgan.
"The credit union does not comment on any ongoing litigation," said Cindy Paschal, vice president of compliance at $51 million American Partners. "The credit union, Dorinda [Simpson, the CU's CEO] and Ann [Boone, the now-retired vice president] are confident that at the end of the day, they did nothing wrong."
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Philip Mohr, the attorney with Womble Carlyle Sandridge & Rice, PLLC, who is representing the members, told Credit Union Times American Partners failed to notify members of Morgan's financial troubles and have "dragged their feet" about producing requested documents regarding the matter.
The plaintiffs are seeking damages for breach of fiduciary duty, fraud, negligent misrepresentation, violations of the North Carolina Investment Advisers Act, negligence, conspiracy, fraudulent concealment, constructive fraud, and unfair and deceptive trade practices.
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