X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

A case involving a widow who opened up a brokerage account with the defunct, CU-formed XCU Capital LLC, its shell later bought by State Employees’ Credit Union, is in the middle of a regulator and legal quagmire.

The New York Times first reported on the story of Helen Cohen, a widow, now deceased, who bought an investment account from what it says was SECU in September 2005. A broker suggested Cohen buy a real estate investment with a company that owned a Florida apartment complex. According to the article, Cohen could make a tax-free exchange of an apartment building that she owned for 30 years and defer capital gains on the sale. Cohen invested $1 million but a trustee later discovered that the apartment complex was financed with an interest-only loan and other factors that might result in a significant loss.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.