BERLIN, N.H. – Guardian Angel CU has filed a lawsuit against a Midwestern bank claiming a former employee sold the credit union and other institutions phony CDs.
The suit claims that a former employee of MetaBank sold phony CDs to a number of institutions. The suit claims there is $4.2 million in CDs outstanding.
The employee used the proceeds from the CDs in an elaborate Ponzi scheme, paying off early investors to make it appear the scheme was legitimate.
Guardian Angel bought a $99,000 CD in April 2005, but eventually learned the CD was a fake. In its suit, the credit union claims the bank should be responsible for the actions of its employee, who deposited the phony CDs’ money into her own account at the bank.
Iowa-based MetaBank also was sued by two Texas banks in April over the phony CDs.
