Three months after Sperry Associates Federal Credit Union signed a letter of understanding and agreement with the NCUA to repair troubles within its loan program, the cooperative has filed a lawsuit against the defunct Eastern Financial Florida Credit Union to recoup losses it claimed came through failed participation loans.
According to the Aug. 20 suit filed in the U.S. District Court for the Middle District of Florida, the Garden City Park, N.Y.-Sperry Associates FCU purchased $4.5 million in participation loans from EFFCU, which merged with Space Coast Credit Union in June 2009.
Sperry contends that a $22.4 million land deal agreement occurred between Eastern Financial and South Florida Properties on October 2006. An undivided participation worth nearly $3 million was sold to Sperry. The 120.7 acre property in St. Lucie, Fla. was appraised at $40 million in 2007. Sperry was sold an undivided participation totaling nearly $3 million in the SFP loan. According to the complaint, Sperry was paid $1.5 million on another $15 million participation loan involving EFFCU and King Credit Facility.
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