PACE Savings & Credit Union opened a subsidiary called PACE Securities where it exploited the trust that customers will normally have in their credit unions by selling high risk investments without disclosing their true risk profile or any of the associated management fees.
Over 40 Million Dollars was invested.
PACE Credit Union sold these shares to existing members by making them appear to be like regular credit union shares which these members already held without disclosing the risks and without providing any documentation.
When these high risk investments lost most of their value during the COVID-19 crash, the new CEO, Barbara Dirks, shut down the PACE Securities division leaving investors with nothing.
Now the investors have launched a class action to represent them in the liquidation proceeding to get what they can from the liquidated PACE Securities Division before more lawsuits follow against PACE Credit Union itself.
Here are some news articles and court documents.