Small Virginia credit union will be the first to receive restitution payments in a Lynrocten FCU fraud case.
Long-time employee gets 40 months for embezzlement.
The NCUA says Northern Piedmont FCU's suit to recover loan participation losses from the failed Lynrocten FCU hampers liquidation.
Three former employees of the $13.8 million Lynrocten Federal Credit Union have been accused of loan participation fraud in a $1.7 million civil lawsuit.
Culpeper, Va., credit union accuses staff of shuttered Lynchburg, Va., credit union of stealing loan sharing funds.