Credit Union Looks To Recoup Money From Loan Scheme

The National Credit Union Administration has intervened as a party in a lawsuit against several former employees of a Lynchburg credit union that closed it doors last year after a fraudulent loan scheme. Northern Virginia Piedmont Credit Union claims $1.6 million in losses due to the fraud. Former manager Linda Newcomb, former head teller Teresa Humphries and another former employee, Becky Nichols are named as defendants in the lawsuit. Lynrocten Federal Credit Union ceased operations last May. In January, Humphries, pleaded guilty to embezzling more than $1 million and awaits sentencing.

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