BELLEVILLE, Ill. (CN) – A class action accuses Scottrade and several banks of investment fraud. Plaintiffs claim that Lavern Huelsmann dba Senior Retirement Services embezzled $139,000 using phony promissory notes and cash management accounts.
In their complaint in St. Clair County Circuit Court, James and Eileen McKay say that Huelsmann commingled their money in an unauthorized trust account for his own use.
Scottrade, FCB New Baden Bank, Germantown Trust and Savings Bank, Tempo Bank and Centrue Bank never investigated whether Huelsmann was licensed to sell securities kept at their banks, never prepared a suspicious activity report on Huelsmann and never contacted the McKays or other class members about suspicious activity involving their deposits, the complaint states.
The class consists of all people who entered into agreements to place their money in a phony cash management account at Scottrade, FCB New Baden Bank, Germantown Trust and Savings Bank, Tempo Bank or Centrue Bank. It is represented by Bernard Ysursa with Cook, Ysursa & Bartholomew.