HARRISBURG, Pa. -- Claiming Belco Community Credit Union failed to disclose its commission earnings with CUNA Brokerage Services Inc., five members have filed a lawsuit against the financial institution saying they lost part of their retirement savings as a result.

Rob Bleecher, the attorney representing the members, told Credit Union Times that the $268 million CU allegedly breached its fiduciary obligation by failing to disclose that it was earning commissions from CUNA Brokerage based on a compensation program the plaintiffs were enrolled in. The members are seeking $50,000 in damages.

"The over-riding matter here is full and fair disclosure," Bleecher said. "The credit union encouraged members to go meet with financial planners without disclosing there was this contract."

Bleecher said the members involved, two married couples and one individual, have been with Belco for more than 20 years and had worked with the same CUNA Brokerage financial planner since the late 1990s.

Bleecher said the losses could potentially run from $100,000 to $500,000 based on a calculation of when the members would retire and what they would have earned "if properly invested."

Lonny Maurer, president/CEO of Belco, said given the sensitive situation, he did not want to comment on the suit and referred questions to CUNA Mutual Group, the parent company of CUNA Brokerage. A call for comment to CUNA Mutual has not yet been returned. Bleecher said a complaint has been filed against the broker-dealer with the Financial Industry Regulatory Authority, which regulates securities firms.

Instant Insights /

Members Claim Retirement Fund Loss in Belco Community CU Suit

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