Corporate America Credit Union's case against U.S. Central Federal Credit Union's former directors and executives is going to court. U.S. District Court Judge Inge P. Johnson filed the order March 25, setting a Dec. 6 trial date in Birmingham, Ala.
In a separate case against U.S. Central accounting firm RubinBrown, Judge Johnson denied the St. Louis firm's right to arbitration, which Rubin Brown appealed. Those charges will either be resolved in arbitration, if RubinBrown wins the appeal, or it will go to court.
Both cases now move into the discovery phase.
The $2.2 billion Corporate America has accused U.S. Central of violating the Securities and Exchange Act and state laws, when it solicited PIC II capital from members in late 2008 and concealed the extent of investment losses. The at-risk capital was depleted due to OTTI just weeks after member corporates converted the funds from member capital shares.
The director defendants include former directors Joe Herbst, Charlie Thomas, David Brehmer, Bob Siravo, Larry Eisenhauer, John Franklin, Jim Hansen, Greg Moore and Bill Cheney; former U.S. Central executives Francis Lee and David Dickens; and current U.S. Central Chief Financial Officer Kathy Brick.