Two Women Questioned With Lynrocten Loan Scam - WSET.com - ABC13

Two Women Questioned With Lynrocten Loan Scam

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Lynchburg, VA - A federal search warrant is revealing new details about an alleged loan scam at Lynrocten Federal Credit Union. Preliminary estimates in the warrant put the fraud loss as high as $2 TO $3 million with about 125 fraudulent loans taken out.

Remember, regulators have closed the credit union.

This warrant names two women authorities have been questioning. One is teller Teresa Humphries; the other is manager Linda Susan Newcomb. Both were former full-time staff at Lynrocten.

According to the warrant, Humphries told a Lynchburg detective she and Newcomb concocted the loan scheme 10 years ago at Lynrocten. The warrant states Humphries admitted to authorities that she stole $3,000 to $4,000 a month. She went on to say she and Newcomb opened loans in members' names without their knowing, then deposited funds from the loans into other accounts.

As for Newcomb, when talking to a Lynchburg detective, she denied any knowledge of the scheme.

The search warrant was issued on Newcomb's home in Madison Heights. Residents in the Country Living Mobile Home Park say Newcomb is their landlord and lives at the end of the road past a gated driveway. They say there was a flurry of activity on this quiet country road last week when police seized Newcomb's cell phones, laptop, ipad, documents, checks, hundreds of rounds of ammo and 91 firearms.

Tuesday, we called Humphries and Newcomb. Newcomb did not return our call. But, we spoke with Humphries' husband. He says she is recovering from a heart attack she had in April, but would not comment on the investigation.

As for victims, some have gotten money back, but not all of it, as this investigation continues.

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