Credit Union Employee Linked to Embezzlement Scheme
A former A.G. Edwards stockbroker has been linked to a multimillion-dollar
embezzlement scheme involving at least $10 million. A credit union manager has also been implicated
in the investment scam.
Wells Fargo made claims indicating that the late Edwin F. Rachleff, a longtime investment advisor, had an accomplice in an embezzlement scheme involving at least $10 million. According to reports, Mr. Rachleff had failing eyesight and would have required assistance to continue the alleged scheme.
A complaint filed in U.S. District Court implies that Mary Lou Richards, of Waterford, may have been Mr. Rachleff’s accomplice. Ms. Richards, an employee of the New London Security Credit Union, has denied any involvement.
A memorandum filed in court claims that Ms. Richards never owned a computer while employed at the credit union. The memorandum also claims that she was computer illiterate and lost her pension as a result of the demise of the credit union.
Mr. Rachleff committed suicide in July 2008. He never disclosed where the embezzled money ended up.
“Rachleff’s ability to carry out the fraud on the organization that he helped to manage was a direct result of negligent oversight of New London’s business in general and Rachleff’s activities in particular,” according to the suit filed by Wells Fargo.