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.
An NCUA spokesman told Credit Union Times, "NCUA is discussing possible settlement with the CU's outside accounting firm, and Wells Fargo (the successor to AG Edwards). If we do not reach settlement we may pursue legal action." The spokesman did not know when the settlement talks would conclude.
Recommended For You
In related news, according to the Financial Industry Regulatory Authority, in October, a person filed a claim against Rachleff for the alleged misappropriation of $7.5 million. Rachleff's FINRA broker check report did not reveal the identity of the person including if he or she was a CU member.
© 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.
