ALEXANDRIA, Va.-NCUA has issued a prohibition order against former WesCorp CEO Bob Siravo that includes an agreement Siravo pay $600,000 to the liquidating agent for the failed corporate. As part of the agreement, which Siravo consented to without admitting liability or fault in order to avoid further administrative litigation or court proceedings, Siravo also agreed to settle any claims that NCUA may have had regarding the conservatorship and eventual liquidation of U.S. Central FCU.
Siravo has been pursuing litigation against NCUA, arguing all of his actions were taken with the full consent and approval of NCUA, which had examiners on-site at the San Dimas, Calif.-based corporate. Siravo had been seeking to depose members of the NCUA board as part of that litigation, but a court recently ruled against him and said other senior executives should be deposed instead.
Siravo received a $6.9-million payout from a SERP he had with WesCorp that was paid on May 13, 2008, nearly a year before NCUA placed the former $32-billion corporate into conservatorship. WesCorp was eventually rechartered as Western Bridge FCU but its members declined to recapitalize it and its remnants were eventually purchased by Catalyst Corporate. One former WesCorp official continues to challenge the civil negligence claims brought by NCUA against the corporate's former management, former CFO Todd Lane. Former Chief Investment Officer Bob Burrell, Chief Risk Officer Timothy Sidley and Human Resources Director Thomas Swedberg all agreed to settlements in the case.
The new order bars Siravo from becoming an employee of, holding any office in, or otherwise participating in any manner in the conduct of the affairs of any federally insured credit union.