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New London FCU Auditors Deny NCUA Malpractice Claims

In response to an NCUA complaint, the auditors for New London Security Federal Credit Union have denied claims of professional malpractice for the cooperative that was liquidated in 2008.

By Michelle A. Samaad | Updated on June 20, 2010

In response to an NCUA complaint, the auditors for New London Security Federal Credit Union have denied claims of professional malpractice for the cooperative that was liquidated in 2008.

According to several media reports, Beller, Shepatin and Co. PC, Robert Shutsky, an employee at the accounting firm, and Ed Lorah and Associates LLC, which was a successor firm, filed a June 11 response denying the NCUA’s allegations. In its March 19 complaint, the NCUA alleged professional malpractice because Beller failed on several counts to detect fraudulent activity in an investment account held by the defunct New London in Conn. As a result, the CU was unable to prevent or mitigate the damages caused by the fraudulent investment account, ultimately losing virtually all of its assets.

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