Long-time employee gets 40 months for embezzlement.
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.
More information is revealed about how two women created and sold fake participation loans.
The NCUA can intervene in a loan participation fraud suit involving the failed $13.8 million Lynrocten Federal Credit Union.
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.