LOS ANGELES – NCUA on Wednesday signed a settlement deal with Robert Burrell, who was the chief investment officer of WesCorp FCU prior to the collapse of the one-time $34-billion corporate credit union.
Terms of the settlement were not disclosed. NCUA is not expected to receive any financial compensation, but rather an agreement from Burrell to a ban from credit unions, as was the case with another WesCorp executive, Timothy Sidley, who was the corporate’s chief risk officer and settled earlier with the regulator.
Both Burrell and NCUA have agreed to pay their own legal expenses and to drop all counterclaims related to the spectacular corporate failure.
In the aftermath of the WesCorp failure NCUA brought a civil negligence suit against five senior executives and 11 board members. The charges against the WesCorp directors were dismissed last year and Burrell is the third of the senior executives to settle charges. The two holdouts are CEO Bob Siravo and CFO Todd Lane.
Meantime, a U.S. Magistrate has scheduled a settlement negotiation between NCUA and Siravo for May 24. Lane’s lawyer says his client plans to contest the suit.
