An attorney representing the members who filed suit against IBM Southeast Employees Federal Credit Union confirmed that a settlement had been reached regarding alleged fraudulent investments sold through a third-party broker dealer that was working with the credit union.
Filed in 2009, the complaint said the $843 million credit union in Boca Raton, Fla., and its representatives negligently solicited and referred its members to Wellstone Securities LLP, a now-defunct broker-dealer. Wellstone recommended and sold bonds issued by Cornerstone Ministries Investments Inc. to the members, according to the complaint. Cornerstone later filed for bankruptcy and members who purchased the securities allegedly lost millions of dollars.
The complaint said more than 100 members in Florida and Georgia purchased $10.5 million of the securities.
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