A credit union member in Florida has filed a federal suit against the $750 million IBM Southeast Employees Credit Union, alleging that a former broker-dealer firm that sold her investments was "nothing more than a bucket shop rife with fraud."
IBM member Claudia Schorrig filed a suit in U.S. District Court for the Southern District of Florida alleging that she invested $60,000 with Cornerstone Ministries Investments through Wellstone Securities, which she subsequently lost. Both firms have subsequently filed for bankruptcy under a cloud of fraud allegations.
"The credit union not only recommended Wellstone, which in turn, sold Cornerstone's worthless securities to unsuspecting investors like Claudia…., the credit union would go much, much farther into the miry clay with Wellstone. The credit union would so descend by actively soliciting members to purchase Cornerstone securities through Wellstone," the suit said.
Recommended For You
"The lawsuit is entirely misdirected and is rife with inaccuracies," IBM said through its law firm. "In our view, it is just one more ripple in the growing tide of legal actions brought by unfortunate victims of either fraud, their own bad judgment or our troubled economy, who now hope they might recover their losses by imposing blame on the nearest deep pockets. The credit union and its CEO, Lary McCants, deny the allegations and intend to vigorously defend themselves in court."
© 2025 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.
