LOS ANGELES – Lawyers for NCUA are scheduled to meet tomorrow with lawyers for former WesCorp FCU Chief Financial Officer Todd Lane to discuss a potential settlement of civil negligence claims brought by NCUA in the 2009 collapse of the one-time $34-billion corporate credit union.
The meeting will take place just as Lane’s lawyers and those for former WesCorp CEO Bob Siravo are seeking testimony in the case from two of the three NCUA Board members.
Lawyers for Lane, now CFO at California Coast CU, had said earlier that Lane has no intention of entering into a settlement because he denies responsibility for the historic corporate credit union failure, projected by NCUA to cost $7 billion to resolve.
The settlement negotiations are scheduled to be held before a U.S. Magistrate.
Lane and Siravo are the last of five senior WesCorp executives fighting NCUA’s claims, with former Chief Investment Officer Bob Burrell, Chief Risk Officer Timothy Sidley and Human Resources Director Thomas Swedberg agreeing to settlements in the case.
In a related development, a federal judge in the case has postponed a hearing on NCUA’s request to bar depositions by NCUA Chairman Debbie Matz and NCUA Board member Gigi Hyland until later in August. NCUA claims Siravo’s lawyers should be prevented from deposing the two NCUA Board members, along with former chief corporate examiner Kent Buckham, because the information they hold can be obtained from other sources or because they do not have direct knowledge of the information sought by Siravo. Among other assertions, Siravo is attempting to prove NCUA knew of and approved the risky investments purchased by WesCorp that caused the huge failure.
A hearing at the U.S. District Court for the Central District of California is scheduled for Aug. 21.