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Appeals Court to Hear Oral Arguments of Closely-Watched Credit Union Business Email Compromise Case

A ruling against 1st Advantage FCU could create a troubling precedent for the credit union industry.

By Peter Strozniak | November 22, 2024 at 04:00 PM
The Court of Federal Appeals (Lewis F. Powell Courthouse) and the skyline of Richmond, Virginia, in the early morning from the foot of the Virginia Capitol grounds, in Richmond, Virginia. Credit: Acroterion via Wikimedia Commons

The U.S. Court of Appeals for the Fourth Circuit in Richmond, Va., will hear oral arguments on Dec. 12 over a closely watched business email compromise case that could have wider implications for the credit union industry.

The $1 billion 1st Advantage Federal Credit Union in Yorktown, Va., is asking the appeals court to reverse a 2023 judgement by U.S. District Court Judge Raymond A. Jackson in Norfolk, who found the credit union liable for fraudulent fund transfers when it failed to act on anti-money laundering alerts and suspicious activity from a member’s account and payments made to that account from Studco Building Systems.

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