LOS ANGELES – A third WesCorp FCU executive being sued by NCUA in connection with the huge corporate credit union failure has agreed to settle the NCUA case, the two sides reported this afternoon.
Timothy Swedberg, who was the director of human resources for the one-time $34 billion corporate, was charged in a civil suit by NCUA with manipulating the corporate’s retirement plan in order to reap more money for himself and WesCorp CEO Bob Siravo. The settlement is expected to bear no financial reimbursement for NCUA and result in Swedberg agreeing to a lifetime ban from the credit union industry.
Swedberg’s agreement follows recent settlements with Bob Burrell, who was WesCorp’s chief investment officer, and Timothy Sidley, its chief risk officer.
Negotiations with Siravo are ongoing.
Todd Lane, who was the WesCorp chief financial officer, has vowed to fight the charges against him and is seeking a jury trial.
In its suit NCUA claims negligence on the part of the senior WesCorp executives caused the failure of the corporate giant, which is estimated to cost NCUA and the credit union movement $7 billion. Similar charges against 11 WesCorp directors, including CUNA President Bill Cheney, were dismissed by the court last year.
