LOS ANGELES – A federal court this week scheduled a settlement conference for Feb. 27 on NCUA’s civil negligence suit against top executives of WesCorp FCU.
Both sides are being asked to submit six copies by Feb. 20 of a summary of the factual background in the case, a summary of important legal issues, a description of the damages or other relief sought, a summary of settlement negotiations and plans for a trial, if the case goes that far.
In the suit NCUA claims negligence on the part of senior WesCorp executives caused the 2009 collapse of the one-time $34 billion credit union. Named as defendants are: CEO Bob Siravo, CFO Todd Lane, Chief Investment Officer Bob Burrell, Chief Risk Officer Timothy Sidley and Human Resources Director Thomas Swedberg .
The WesCorp executives have filed counterclaims alleging that NCUA knew all along of what was going on at the corporate giant through an on-site examiner it had at WesCorp’s San Dimas, Calif., headquarters for as long as 15 years, and that the NCUA Board shared responsibility for the corporate’s demise because it regularly approved waivers of its corporate regulations to allow WesCorp to invest in risky securities.
Each and every party named in the suit were directed to appear in person at the conference, which could last all day, the court said.
U.S. Magistrate Margaret Nagle, and not Judge George Wu, who is presiding over the case, will preside over the settlement negotiations.
The Feb. 27 session is expected to last all day.
