WASHINGTON – A federal magistrate ruled that NCUA Board members Debbie Matz and Gigi Hyland need not testify in the suit against top WesCorp FCU executives, but approved a bid by the WesCorp figures to depose the one-time chief corporate examiner and the agency’s two on-site examiners.

In issuing her ruling, Judge Margaret Nagle agreed with NCUA lawyers that Matz and Hyland, who left the NCUA Board last week, did not have direct knowledge of the examinations process at WesCorp before the 2009 collapse of the one-time $34 billion corporate, so need not be deposed by the WesCorp figures, former CEO Bob Siravo and former CFO Todd Lane. Judge Nagle indicated it is still a possibility that Matz and Hyland will be deposed at a later date.

Siravo and Lane are the last hold-outs of five senior WesCorp executives sued by NCUA over the failure of the corporate giant, projected to cost the credit union system $7 billion to resolve. The other three executives, former Chief Investment Officer Bob Burrell, Chief Risk Officer Timothy Sidley and Human Resources Director Thomas Swedberg, have all agreed to out-of-court settlements with NCUA.

Judge Nagle did authorize Siravo to depose Kent Buckham, who headed NCUA’s oversight of WesCorp as director of its Office of Corporate CUs, and who is now director of the agency’s Office of Consumer Affairs; and the agency’s two on-site WesCorp examiners, Lance McCallister and Joe Shoshoo.

Siravo also plans to depose Burrell, Sidley and Swedberg, as well as several WesCorp directors, as part of his defense.


Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.