LOS ANGELES – The former chief executive of WesCorp FCU is said to be ready to settle civil negligence claims with NCUA over the failure of the one-time $34-billion corporate credit union, following two other senior WesCorp executives who have agreed to terms.
Attorneys for Robert Siravo, who was CEO of WesCorp during its 2009 collapse and subsequent takeover by NCUA, have scheduled a settlement conference for April 11 before a U.S. Magistrate to discuss potential parameters of a deal, according to individuals involved in the case.
Siravo’s bid follows separate deals by WesCorp’s former chief risk officer Timothy Sidley, and its former chief investment officer Robert Burrell, to settle NCUA claims. A fourth WesCorp figure, Thomas Swedberg, the director of human resources who NCUA claims manipulated the retirement plan to aid senior officers, also is nearing a settlement, the sources said.
None of the settlements involve substantial momentary reparations being paid to NCUA as there is no insurance coverage remaining for the WesCorp figures.
As part of his settlement, Sidley agreed to an NCUA prohibition order barring him from working for any federally insured credit union or bank. The other settlements are believed to include similar clauses.
A settlement by Siravo and Swedberg would leave a single figure, chief financial officer Todd Lane, with outstanding claims. Negligence claims against 11 WesCorp directors, including CUNA President Bill Cheney, were dismissed last year by the federal judge in the case, who said the directors could not be held responsible for poor judgment in the huge corporate failure, which is projected to cost credit unions $7 billion to resolve.
