METAIRIE, La.-Louisiana Corporate CU last week said it will receive a $600,000 settlement from Credit Suisse-the last remaining defendant in a 10-year-old National Century Financial Enterprises asset-backed securities fraud case.
Four executives of National Century were sentenced to prison for their roles in a scheme to deceive investors about its financial health. NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the U.S. until it filed for bankruptcy in 2002.
A federal judge found the executives purposely misled investors. The bankruptcy left investors such as LaCorp holding the bag for billions of dollars in losses.
Credit Suisse was one of the underwriters of the bonds, and bondholders said it sold the notes and defended their creditworthiness despite knowing of misused investor funds and while missing red flags.
"This settlement for nearly $600,000 after legal fees came after years of strenuous litigation and brings the total recovery to 98% of Louisiana Corporate's original investment amount," said David Savoie, president of LaCorp.
