LOS ANGELES (1/27/12)--A settlement conference has been set for Feb. 27 by a federal court overseeing the National Credit Union Administration's (NCUA) $6.8 billion lawsuit against top executives of the now defunct Western Corporate FCU (WesCorp).
The U.S. District Court for the Central District of California, Los Angeles, ordered the parties to appear at 10 a.m. PT on that date. The session is expected to continue throughout the day, according to the court order setting the conference.
Also, they are to deliver or fax to Magistrate Judge Margaret A. Nagle, on or before Feb. 20, a confidential settlement conference statement that summarizes the factual background of the case, important legal and factual issues; damages or other relief sought; settlement negotiations; trial plans; and other relevant facts. Nagle will preside over the settlement negotiations.
NCUA's lawsuit alleges that senior WesCorp executives were negligent in monitoring the investments of the corporate, which was hard hit by losses related to mortgage-backed securities. The suit against former WesCorp officers Robert Siravo, CEO; Thomas Swedberg, head of human resources; Timothy Sidley, chief risk officer; Robert Burrell, chief investment officer; and Todd Lane, chief financial officer, alleges breach of fiduciary duty and fraud related to the investments that resulted in $6.8 billion in investment portfolio losses (News Now Jan. 24).
The executives filed counterclaims and affirmative defenses against NCUA, alleging the agency was aware of WesCorp's investment strategies and approved of and encouraged the strategies.