ALEXANDRIA, Va. (3/6/12)--The National Credit Union Administration (NCUA) has issued an order prohibiting Timothy T. Sidley, a former employee of Western Corporate FCU (WesCorp), San Dimas, Calif., from participating in the affairs of any federally insured financial institution.
Sidley consented to the order, without admitting liability or fault, to avoid administrative litigation and further court proceedings, the NCUA said.
Sidley was the chief risk officer at WesCorp, and was one of five officials the NCUA sued as a result of the collapse of Western Corporate FCU.
The NCUA and Sidley on Friday filed a settlement agreement with a federal court in Los Angeles to dismiss the case, according to a stipulation filed Friday. (News Now March 5) The proposed order stipulates that dismissal of the case would be "with prejudice of all claims and counterclaims" between NCUA and Sidley.
It would not apply to the NCUA's claim against any other defendant in the WesCorp case--Robert Siravo, CEO; Thomas Swedberg, head of human resources; Robert Burrell, chief investment officer; and Todd Lane, chief financial officer. The case stems from the conservatorship and eventual liquidation of that corporate credit union.
The NCUA said the prohibition order against Sidley was one of the terms of the confidential settlement agreement.
Violation of a prohibition order is a felony offense punishable by imprisonment and a fine of up to $1 million.
Use the resource link to view NCUA enforcement orders online.