According to a published report, NCUA has filed an $11.8 million claim to recoup losses against the estate of a deceased financial adviser who worked with the defunct New London Security Federal Credit Union.
TheDay.com reported today that accounts listing the CU's assets do not exist. NCUA liquidated Connecticut-based New London last summer after determining that the CU was insolvent. That same day, Edwin F. Rachleff, a financial adviser who handled the CU's investments, committed suicide. A NCUA representative was not immediately available for comment on the $11.8 million claim.
According to the TheDay.com, NCUA alleged that between 1988 to 2003 the CU deposited money into an account with Elmore Shore Co., which is or was owned by the Rachleff family. Rachleff allegedly created fraudulent account statements claiming the CU was worth $11.8 million however, that money remains missing.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
