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.
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:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
