Virginia Woman Pleads Guilty In $7 Million Credit Union Fraud Case

From the Lynchburg News & Advance on 1/7/14:

A former head teller of the defunct Lynrocten Federal Credit Union pleaded guilty in U.S. District Court on Tuesday to an embezzlement charge that prosecutors say contributed to the financial institution’s collapse in the spring of 2013.

Teresa Wieringo Humphries, 58, of Madison Heights, admitted to embezzling more than $1 million from the Lynchburg-based credit union, which closed in May, U.S. Attorney Timothy J. Heaphy said in a news release.

Humphries had created fraudulent loans and perpetrated check-kiting schemes for more than a decade, Heaphy said. While Humphries stole more than $1 million, he said the total loss to the credit union was more than $7 million.

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Indiana Man Charged In $6 Million Bank Fraud Scheme

Kem E. Linn, 55, of Carmel, Indiana, was arrested yesterday and charged with one count of corrupt business influence, one count of fraud on a financial institution and 48 counts of forgery in connection with a scheme to defraud Evansville, Illinois-based Old National Bank. Linn is an officer of Cubberley's, a Marion, Illinois-based wholesaler of tobacco products, candy and confections. According to a civil complaint filed by the bank against Cubberley's, Linn was at the center of a check-kiting scheme for at least the past five years. Linn reportedly attempted to commit suicide last week and was recovering at the Cornerstone Behavioral Health Center. If convicted on all 50 felony charges, Linn could face as much as 400 years in prison and fines of up to $500,000. Separately, Linn resigned as Grant County Democratic Party chairman after he was charged with making false emergency calls. Details of that case are unavailable.

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