FT. MYERS, Fla. – Norlarco CU has been removed from at least half a dozen investor suits, helping clear the way for the sale of the failed credit union by NCUA.
The credit union was named as defendant in suits brought by Florida real estate investors who say they were defrauded by promoters of a scheme to sell homes at guaranteed returns of 14%. Norlarco and two other failed credit unions, Huron Rivera Area CU and New Horizons Community CU, were among more than a dozen financial institutions that provided financing for the home purchases.
NCUA has sold off Huron River Area CU and New Horizons Community CU and is negotiating with three Colorado credit unions on the sale of Norlarco. NCUA plans to assume as much as $200 million in Florida loans on Norlarco’s books before selling of the good assets of the credit union, member accounts and eight branches.
