Tuesday, August 18, 2015

Judge Makes NCUA Subordinate to CU in Restitution Payments

U.S. District Court Judge Norman Moon ruled that Northern Piedmont FCU (Warrenton, VA) will have first priority in restitution payments ahead of the National Credit Union Administration with respect to a fraudulent loan participation from now defunct Lynrocten Federal Credit Union (Lynchburg, VA).

According to federal prosecutors, nearly 90 percent of loans originated by Lynrocten were fraudulent. The judge ordered the defendants to pay $10 million in restitution payments.

NCUA closed Lynrocten FCU on May 3, 2013.

Read the story.
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