LOS ANGELES (1/7/13)--The last Western Corporate FCU official sued by the National Credit Union Administration (NCUA) has reached a settlement with the agency, according to court documents from the federal court in Los Angeles.
The confidential settlement is with Todd Lane, former chief financial officer of WesCorp.
It is subject to approval by NCUA's general counsel and board, said the U.S. District Court, Central District, California. Counsel has until Jan. 17 to lodge a stipulation of dismissal. U.S. Magistrate Judge Margaret A. Nagle ordered the record of the proceedings sealed.
Other former WesCorp employees had settled their cases earlier. NCUA has since issued cease and desist orders against four officials, prohibiting them from participating in the affairs of any federally insured credit union. They are: Robert Siravo, former CEO; Thomas Swedberg, former human resources director; Bob Burrell, chief investment officer; and Timothy Sidley, former chief risk officer.
The lawsuit stemmed from losses that WesCorp experienced when it purchased residential mortgage backed securities that contributed to its conservatorship.