Two convicted in luxury car loan fraud scheme that led to more than $850,000 in losses at three Illinois credit unions and one in Virginia
Long-time employee gets 40 months for embezzlement.
Four credit unions are out more than $850,000.
Credit union member alleges credit union pressured him to recant his complaint to authorities in straw loan scandal.
Washington federal prosecutors busted a large fraud ring that stole nearly a $1 million from three credit unions and four banks over five years, according to a 60-count indictment filed in U.S District Court in Seattle last week.
Former credit union manager Linda Sue Newcomb pleaded guilty Friday to embezzlement, bank fraud and aggravated identity theft charges in a $10 million loan fraud scheme that led to the May 2013 collapse of the $13.8 million Lynrocten Federal Credit Union in Lynchburg, Va.
Linda Sue Newcomb signs a plea agreement and faces seven to 12 years in federal prison.
Ten defendants in Washington allegedly steal from BECU, TwinStar CU, Sound CU and four banks.
John Struna, sentenced to three years, plays the lotto to repay the $2.3M he stole from Taupa Lithuanian CU and wins $1M.
A former Alabama credit union president/CEO allegedly stole $14 million.