Former credit union manager Linda Sue Newcomb pleaded guilty Friday to embezzlement, bank fraud and aggravated identity theft charges in a $10 million loan fraud scheme that led to the May 2013 collapse of the $13.8 million Lynrocten Federal Credit Union in Lynchburg, Va.

Newcomb, who will be sentenced May 26, could face seven to 12 years in federal prison, according to her plea agreement. She also will be required to forfeit four properties, including 14 acres on the James River, a $75,000 retirement account and GMC Sierra truck.

Teresa Wieringo Humphries, a former head teller at the failed cooperative, pleaded guilty in January 2014 to embezzling more than $1 million. Humphries admitted participating in the fraud scheme with Newcomb.

Humphries is scheduled to be sentenced March 24.

Newcomb and Humphries began the fraud scheme in 2000. They originated loans in the names of LFCU members without their knowledge or consent. They also drafted and approved fictitious loans.

Newcomb and Humphries transferred funds and wrote checks on certain LFCU members' accounts without their knowledge or consent. At least three different accounts are alleged to have been used by the two defendants. Certain proceeds from the schemes were deposited to the LFCU bank accounts of Newcomb, Humphries and their family members, or were used by the two defendants to make payments to other fraudulent loans, according to court documents.

Newcomb, on behalf of LFCU, sold fraudulent loans as participations.

The value of the fraudulent loans this scheme was in excess of $1 million, according court documents.