NEW LONDON, Conn. – Authorities are investigating Monday’s suicide of an 82-year-old broker who handled investments for New London Security FCU, just hours after NCUA seized the $13 million institution.
Edwin Rachlef, a broker with A.G. Edwards who handled the credit union’s investments, jumped from a window on the top floor of an 11-story apartment building for seniors in New London around 6:30 p.m. Monday, hours after NCUA announced it was liquidating the 72-year-old credit union. Rachlef was not a resident of the building.
Police have ruled the death a suicide.
Law enforcement officials refused to speculate on a connection between the broker’s suicide and the credit union takeover, but confirmed they are investigating. NCUA refused to discuss the reasons for the takeover, other than to say the credit union was insolvent and had no chance of regaining viability.
“The credit union was liquidated because during a regular review it was found to be insolvent,” said Cherie Umbel, spokeswoman for the agency. “NCUA’s fiduciary responsibility to the members and the NCUSIF required the agency close the credit union.”
NCUA data shows the credit union was highly liquid with 17% capital, but had only $234,000 in loans and 99% of its assets in investments. Almost $7.2 million of that was in U.S. Treasuries but the report doesn’t indicate what the remainder was invested in. The credit union reported a slight loss, $5,000, for the first six months of the year, but was profitable in the first quarter and for 2007.
NCUA said New London Security FCU was also one of about 10 credit unions nationwide still using manual posting, that is, keeping deposit and loan records for the credit union’s 367 members, by hand.
