ALEXANSRIA, Va. – NCUA Friday afternoon issued a prohibition order against Thomas Swedberg, the former director of human resources for WesCorp FCU, which bars Swedberg from working for corporate credit unions.
Swedberg is the third of five WesCorp figures sued by NCUA to settle civil charges in the 2009 collapse of the one-time $34 billion corporate credit union, along with former Chief Investment Officer Robert Burrell and former Chief Risk Officer Timothy Sidley. NCUA has barred Sidley from working for any federally insured credit union; but Burrell and Swedberg have just been banned from corporate credit unions.
NCUA charged Swedberg conspired with then-WesCorp CEO to manipulate the corporate’s retirement plan, the Supplemental Executive Retention Plan (SERP), in order to create greater benefits for Siravo and Swedberg, among others.
Siravo, who was paid almost $7 million in accumulated retirement benefits the year before he was fired when NCUA took over WesCorp in March 2009, earned as much as $2.3 million of unearned compensation from the scheme, according to NCUA. Todd Lane, WesCorp’s chief financial officer, earned an additional $1.4 million from the scheme, the suit claimed.
On May 13, 2008, WesCorp paid Siravo a lump sum SERP payment of $6.9 million, but he was only entitled to $4.5 million, according to NCUA.
Swedberg retired at the end of 2008 and on January 2009 he received a SERP payment of $1.2 million, but was only entitled to $535,000, NCUA claimed. Lane, according to NCUA, also received retirement benefits of $1.4 million he was not entitled to.
Siravo and Lane, who is now CFO at California Coast CU, are continuing to contest the civil charges against them.