Former Bank Teller Sentenced for Fraudulent Loan Scheme

Allison Tussey —  March 30, 2015 — Leave a comment

Teresa Wieringo Humphries, 60, Madison Heights, Virginia, the former head teller of the Lynrocten Credit Union, Lynchburg, Virginia, was sentenced on federal embezzlement charges for her role in a scheme whereby she, and the manager of the credit union, used unauthorized and fraudulent origination of loans in the names of credit union members to embezzle and steal funds from the credit union’s deposits.

The defendant previously waived her right to be indicted and pled guilty a one-count Information charging her with embezzlement from a Federal Credit Union. Humphries was sentenced to 40 months of federal incarceration.

According to evidence presented at previous hearings by Assistant United States Attorney Daniel Bubar, Humphries had been the head teller at the Lynrocten Credit Union since the mid-1980s. Beginning in 2000, and continuing until the credit union’s liquidation, Humphries, and Linda Sue Newcomb, the manager of the credit union, carried out a scheme to embezzle and steal funds from the credit union’s deposits through the unauthorized and fraudulent origination of loans in the names of credit union
members.

An additional portion of the scheme involved Humphries and Newcomb using check kiting to obtain additional monies of the credit union and conceal and facilitate the fraudulent loan scheme.

The funds created through both the loan and check writing portions of the scheme were eventually funneled to the Lynrocten Credit Union accounts of Humphries, Newcomb and their family members.

Between 2007 and the liquidation of the Lynrocten Federal Credit Union in 2013, Humphries personally stole approximately $3,000-$4,000 per month that she deposited into the accounts belonging to her family members. In total, Humphries stole in excess of $1 million from the Lynrocten Federal Credit Union. The overall loss to the credit union, however, was in excess of $10 million, and contributed to the ultimate collapse of that financial institution.

Linda Sue Newcomb is scheduled to be sentenced for her role in the scheme on May 26, 2015 in U.S. District Court in Lynchburg.

The investigation of the case was conducted by the Federal Bureau of Investigation, the United States Secret Service and the Lynchburg Police Department. Acting United States Attorney Anthony P. Giorno and Assistant United States Attorney Daniel Bubar are prosecuting the case for the United States.

Be Sociable, Share!

Allison Tussey

Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

*