Navy Federal 'parking lot scam' leads to new federal indictment as victims fight for justice

Federal prosecutors have charged another person in connection with the "parking lot scam" targeting Navy Federal Credit Union customers, marking the latest development in a fraud scheme that has victimized hundreds of people in recent years in the Hampton Roads region.

The scheme involves suspects approaching victims near Navy Federal branches, often targeting military-aged males. Using what prosecutors describe as "deceit and intimidation," the suspects obtain victims' cell phones and transfer money from their online mobile accounts in various ways.

Attorney fighting Navy Federal to get money back for personal loans that people say they didn't authorize

This latest indictment against Corey Smith follows charges filed against 10 other people in October for similar crimes.

WTKR has been reporting on this scheme for over a year, interviewing several victims. Some say no arrests were made in their cases while others say the suspect has been arrested.

All the victims we spoke to say they were told by Navy Federal they must repay personal loans taken out fraudulently in their names and pay interest on the loan.

Feds arrest 10 suspects in massive scheme targeting Navy Federal customers

One victim said he was being charged 18% interest on a personal loan he never applied for, even after reporting it as fraud to Navy Federal.

"[Navy Federal] told me I had to start paying it back immediately because even though I submitted everything, it's still my responsibility to pay it," Matt Tignor said.

The pattern remains consistent across cases: suspects approach victims in parking lots claiming to need help, and victims hand over their phones.

Virginia Beach Attorney Gary Byler got involved after seeing WTKR's reporting on the scam.

"I saw your report on TV immediately called and said no, no, no, no, no," Byler said.

Navy Federal customer forced to pay back loan she didn't take out after scam

Since we interviewed Byler and aired his offer to help victims, he has been working with about 40 people affected by the scam.

"We're making some real progress. We filed two civil actions, one in Virginia Beach and one in Suffolk, which will require a response from Navy Federal," Byler said.

Byler argues that victims should not be forced to repay loans they never initiated.

"If you didn't initiate the loan, if you didn't get the money, then you don't owe the money. These electronic transfers are for the benefit of the institutions. They were created by the institutions to maximize their profits," Byler said.

In our most recent attempt to get information from Navy Federal, WTKR asked about the new indictment against Corey Smith, the legal action taken by Byler, information about potential changes to their online personal loan application process, and why they're charging interest to members who reported fraud. They provided a limited response.

"We can't comment on an ongoing investigation but advise all members to avoid sharing their phone with any unknown individuals," a Navy Federal spokesperson said.

Byler said he believes what's happening to these victims is fundamentally wrong.

"The world is not a perfect place. It is not the way it was created so there will always be some injustices. We're called to do what we can in our own little area, and it was never any question in my mind, Margaret, that we would help any of these folks that we could. No way I could stand by. And the offer is still open. We're still getting folks who have been cheated," Byler said.

Byler has two court hearings scheduled for December for the civil actions he has already filed.

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