A 90-year-old Virginia woman is suing the NCUA over the loss ofher life-savings of more than $227,000 following amultimillion-dollar fraud scheme that closed the Lynrocten Federal Credit Union.
Lawyers representing Ruby Van Scoten filed the civil lawsuit inU.S. District Court in Lynchburg on Oct. 31. They are seeking ajury trial in hopes of reclaiming Van Scoten’s money that the NCUAclaimed it had a “right of offset” based on Van Scoten’s relative’sdebts of more than $265,000.
In 2002, Van Scoten, 90, of Madison Heights became amember of the Lynchburg-based LFCU. In April 2013, NCUA examinersuncovered the fraud that began 2000 by a teller and the creditunion’s former president/CEO Linda Sue Newcomb. By May 2013, the NCUAliquidated the credit union after determining it was insolvent.
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