Former board members and staff at the liquidated New London Security Federal Credit Union are among those accused by five members of negligence in a lawsuit to recoup $4 million in losses.

The CU’s former accounting firm is also being blamed for failing to supervise its financial adviser. The adviser, Edwin Rachleff, was also an investment broker with A.G. Edwards & Sons Inc., which later merged with Wachovia Securities and then Wells Fargo, who handled investments for New London. The CU was declared insolvent and liquidated in 2008 by the NCUA as a result of mismanagement by the now-deceased Rachleff. The losses totaled nearly $12 million.

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Peter Westerman


Credit Union Times

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