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NCUA in Settlement Talks to Recoup CU's $11.8 Million Losses

The NCUA confirmed that it is discussing a possible settlement to recover losses against the estate of a deceased financial adviser who worked with the defunct New London Security Federal Credit Union.

By Michelle A. Samaad | Updated on December 06, 2009

The NCUA confirmed that it is discussing a possible settlement to recover losses against the estate of a deceased financial adviser who worked with the defunct New London Security Federal Credit Union.

In July 2008, Edwin R. Rachleff, an A.G. Edwards broker who handled investments for the CU, committed suicide the same day that the NCUA liquidated the financial institution for insolvency. Rachleff allegedly created fake account statements that showed New London Security was worth $11.8 million, according to the NCUA. The funds were supposedly deposited into the CU’s account from 1998 to 2003; however the $11.8 million the NCUA is seeking was not there. As a result of the missing funds, the CU was declared insolvent and then liquidated.

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