LENEXA, Kan.-A year after the takeover of U.S. Central FCU, David Dickens, the former chief investment strategist who was fired as losses began to spiral out of control at corporate's corporate, is fighting with NCUA over the terms of his severance.
Documents filed with NCUA show that immediately after U.S. Central fired Dickens as vice president of asset liability management last Feb. 5, Francis Lee, then-president of U.S. Central hired a law firm to determine whether he could fire Dickens for "cause," an important term when determining large severance pay-outs for corporate executives. The review of Dickens' departure determined on March 4 that he was fired "without cause."
Dickens, who had worked at U.S. Central for 21 years, was the only executive publicly held responsible for the corporate's problems up to that point. When NCUA took over U.S. Central two weeks later, on March 20, it fired Lee as well, and removed all nine U.S. Central directors.
In his role at U.S. Central Dickens was the chief architect of the corporate's portfolio strategy that invested heavily-eventually a third of its portfolio - in mortgage-backed securities. Growing losses on investments forced U.S. Central to fire Dickens, but only Dickens, as losses were mounting. The firing came a month after U.S. Central, based on Dickens' projections, estimated 2008 losses would be about $100 million and they turned out to be more than $1.2 billion.
The documents filed with NCUA show that Dickens is disputing the terms of his severance and believes he is owed money for unpaid leave, COBRA health care payments and a legal defense of his dispute with U.S. Central.
His severance payment included $706,992 for 18 months salary, 2008 paid time off of $25,379, a benefit payment of $21,396 and 2009 time paid off of $9,064, for a total of $762,831.
NCUA removed the information from its website and said its posting was a mistake. "NCUA mistakenly posted confidential correspondence on its website for several hours on Feb. 25, regarding a settlement that has been reached with former US Central FCU Executive Vice President David Dickens. The item was removed from the website shortly after NCUA staff was notified of its posting. The placement of the correspondence was completely accidental, and NCUA regrets the error," said John McKechnie, chief spokesman for the agency.
"Mr. Dickens was terminated prior to the conservatorship of U.S. Central in March 2009. The terms of Dickens' separation were thoroughly reviewed by NCUA following the conservatorship. NCUA determined that it was contractually obligated to pay Dickens' post-separation salary and life insurance premiums. In addition, Dickens was entitled by law to the accrued balances in two deferred compensation accounts because they represent monies paid prior to the conservatorship and held in trust for Dickens' benefit. However, NCUA disallowed Dickens's claims for post-termination deferred compensation contributions and post-termination health insurance premiums, a specific employer contribution to his deferred compensation plan, payment for the prior year's unused paid time-off, and reimbursement of legal fees. Dickens has appealed the disallowed items."
