The Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corp. has sued 12 formerp directors and officers of the nowdefunct Virginia Savings and Loan Association, claiming that their negligence and financial finagling caused the firm's demise three years ago.

The civil lawsuit, filled this week in U.S. District Court in Alexandria, seeks to recover more than $1 million in losses that Washington-Lee Savings and Loan Association incurred when it agreed to merge with the financially troubled VSL to keep it from financial collapse.

The federal agencies charge that the bank's directors and officers mismanaged the firm's money and used "unsafe and unsound lending practices" such as creating loans to make the institution appear sound when it wasn't and personally profiting from some of the transactions.

In one specific claim the agencies alleged that John L. Scott, VSL's chief executive officer, arranged the purchase of an $866,000 loan four years ago from the Home Savings and Loan Association of Roanoke. That loan was arranged so that a holding company controlled by Scott, a former Virginia state delegate, and another top officer could acquire the Roanoke firm.

According to published reports when VSL's troubles were uncovered three years ago Scott owned 52 per cent of VSL stock and profited from a variety of business dealings with the institution.

Scott sold real estate in which he had an interest to the savings and loan association at a profit to himself, bought other property that the association later decided to acquire for a new office building and profited from having the overwhelming majority of VSL's real estate loan recipients steered to his law firm for the legal settlement of their loans, the reports said.

According to the lawsuit, the Virginia State Corporation Commission determined in 1975 that VSL was insolvent and that a merger was necessary. Although the merger was agreed to on March 18, 1975 it was not consummated until this month. At that time the FSLIC was assigned the claims Washigton-Lee said it lost by the merger.

According to the suit in 1974 VSL purchased an $866,000 loan from the Roanoke savings and loan which had been given to a Roanoke couple. The loan was secured by a 96-unit apartment complex. The loan was delinquent, the agencies alleged, and Washington-lee consequently lost $477,291 on the loan after the merger.

During another loan transaction later in 1974 VAL made a $100,000 loan to a Lynchburg man, the net proceeds of which were applied to the deliquent loan of the same Roanoke couple, according to court papers. Former VSL president Howar Brock Sr. knew that the man was unable to repay the loan, the federal agencies alleged, and only "approved the loan to deceive supervisory authorities and examiners with respect to the strength of VSL's loan portfolio."

In the end Washington-Lee claimed it lost more than $25,000 on that transaction, court papers said.

Those named as defendants in the lawsuit are: Brock, Scott, and former VSL directors Woodrow T. Robinson, George W. Harrison, Milton Alexander, R. Marshall Fitton, Arlington County Sheriff J. Elwood Clements, and Raynold C. Glazebrook. Also named were VSL officers Gerald A. McCormick, Marvin Greene, and William T. Desmone.

Ruby W. Millikan was named as Xecutrix of the will of Willard W. Millikan, a former director of VSL.