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.
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Due Diligence?
ReplyDeleteAre there similar stats to compare from FDIC?
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