UPDATE: Linda Newcomb Charged with Embezzlement, Bank Fraud, Aggravated Identity Theft

UPDATE: A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged the former manager of the Lynrocten Federal Credit Union in Lynchburg with embezzlement, bank fraud and aggravated identity theft charges.In an indictment unsealed Wednesday, following the defendant's initial court appearance, the grand jury has charged Linda Sue Newcomb, 62, of Madison Heights, Va., with one count of embezzlement of funds from a federal credit union, four counts of bank fraud and three counts of aggravated identity theft.

According to release from the U.S. attorney's office, Newcomb and Head Teller Teresa Humphries allegedly concocted this scheme back in 2000. The release says Newcomb and Humphries would draft and approve fraudulent loans in the names of Lynrocten members.

They even entered into Loan Participation Agreements with other federal credit unions obtaining loans in value of more than one million dollars. The indictment also alleges the two transferred funds and wrote checks on behalf of members without their consent.

Humphries told a detective with the Lynchburg Police Department last year she was responsible for creating the smaller loans, while Newcomb was responsible for the larger loans.

Humphries admitted she was stealing around three to four thousand dollars a month --- which she deposited into family members accounts.

The National Credit Union Association began reimbursing LFCU members last summer. As of July the NCUA has reimbursed 15-hundred accounts.

----------Madison Heights, VA - Amherst County Sheriff's Office and the FBI confirm that they arrested the former manager of the Lynrocten Federal Credit Union in Lynchburg on Tuesday.We could not confirm what Linda Newcomb is charged with, but she was arrested in her home in Madison Heights.The former head teller, Teresa Humphries, pleaded guilty to federal embezzlement charges earlier this year.Federal prosecutors accused Newcomb and Humphries of operating a fraudulent loan scheme and stealing more than one million dollars.The Credit Union was shut down last May.Earlier this year, prosecutors said Humphries and Newcomb took out more than 800 false loans using the names of account holders, worth more than 10 million dollars.From 2007 to 2013, Humphries personally stole between 3 and 4-thousand dollars every month that she deposited into accounts belonging to family members.We're working to learn more about what Linda Newcomb is changed with -- stick with ABC 13 for the latest.

close video ad
Unmutetoggle ad audio on off