Sunday, November 24, 2013

Northern Piedmont FCU Sues Employees of Failed CU

Northern Piedmont Federal Credit Union (Culpepper, VA) has filed a lawsuit against three employees of failed Lynrocten Federal Credit Union (Lynchburg, VA).

According to the complaint, Northern Piedmont entered into multiple loan-participation agreements with Lynrocten.

From 2009 through 2011, Northern Piedmont wired more than $3 million to Lynrocten. Court documents further state Northern Piedmont has subsequently lost “at least $1,695,793.24.”

According to court documents, Northern Piedmont states it learned from NCUA investigators that only one loan allegedly supporting the loan-participation agreements was legitimate.

Read the story.



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