LOS ANGELES – A settlement conference between NCUA and lawyers for former WesCorp FCU CEO Bob Siravo failed to bear fruit and the sessions ended without a deal, according to sources involved in the negotiations.
However, the parties are continuing to discuss settlement under court supervision.
NCUA, which has settled civil negligence claims against three of five senior WesCorp figures it sued over the failure of the one-time $34-billion corporate credit union, continues to seek a deal with Siravo and WesCorp’s former CFO Todd Lane. Lane has indicated he will not settle the charges.
In recent weeks WesCorp’s former chief investment officer, Bob Burrell, its former chief risk officer, Timothy Sidley, and its former director of human resources all have agreed to settlements of their cases, leaving only Siravo and Lane as litigants in the suit.
NCUA’s charges against 11 former WesCorp directors were dismissed last year by the judge hearing the case.
NCUA charged the 16 individuals with gross negligence in the 2009 collapse of the corporate giant, which is estimated by NCUA to cost the credit union system $7 billion to resolve.
