Loan Participation Fraud Alleged at Small Credit Union
Here’s why it is so important to perform thorough due diligence before purchasing loan participation interests. $20 million Northern Piedmont FCU in Culpeper, VA has filed a $1.7 million civil lawsuit against three former employees of the now-liquidated Lynrockten FCU. Northern Piedmont purchased loan participations from Lynrcten FCU in loans that were later determined to be fraudulent. The majority of the funds from the loan participation purchases allegedly ended up in the personal accounts of the former employees. [12/5]