The NCUA announced today it has served 18 former U.S. Central FCU directors and officers with demand letters, alleging their breach of fiduciary duty contributed to the failed corporate's losses.
The letters were required for a notice of claim the NCUA filed with Travelers Casualty & Surety Co. yesterday to preserve its right to full coverage provided under U.S. Central's Directors and Officers Liability policy.
Filing the claim notice was only a preliminary step, the NCUA said, and the agency will "take the time necessary to complete its investigation and decide at a later date whether or not to initiate civil litigation against any individual directors or officers."
Demand letters were sent to former board members David Brehmer, Bill Cheney, Larry Eisenhauer, Edward J. Fox III, John Franklin, Kathy Garner, Jim Hansen, Joe Herbst, Greg Moore, Bob Siravo, Brad Thomas, Charlie Thomas, Bill Walby and Roshara J. Holub; and, former employees Francis Lee, Dave Dickens, Connie Loveless, and Kathy Brick.
NCUA's Inspector General is also required by law to conduct an independent Material Loss Review of the causes of losses at US Central, and assess NCUA's supervision of the seized corporate. The Material Loss Review is currently in the field work stage, which involves gathering and analyzing voluminous amounts of data and information.
A full report will be issued by the Inspector General when the review is complete, the NCUA said.