LOS ANGELES – NCUA has reached a negotiated settlement on civil negligence charges with former WesCorp FCU CFO Todd Lane, the last of what was once 19 defendants in the case.
The settlement, reached during a negotiating session last Friday, will apparently allow Lane, the current chief financial officer at California Coast CU, to continue working in the credit union industry but bar him from working for corporate credit unions, as per the settlements with the other top WesCorp executives.
Lane is the final one of five senior WesCorp executives to settle the NCUA civil charges, along with former CEO Robert Siravo, former Chief Investment Officer Bob Burrell, former Chief Risk Officer Timothy Sidley and former Human Resources Director Thomas Swedberg.
The original NCUA suit, filed in November 2009 in state court, then moved to federal court, also named 11 former WesCorp directors, all CEOs of large western credit unions, but the federal court eventually dismissed those charges.
The individuals were all charged with negligence in the 2009 collapse of the one-time $34 billion corporate credit union under the weight of risky bets on residential mortgage-backed securities. NCUA projects the corporate failure will cost $7 billion to resolve, making it the biggest credit union failure ever.
The Lane settlement, which must still be approved the NCUA Board, stipulates the civil charges against the WesCorp figure will be dismissed by Jan. 17, according to court records.
