In a tentative ruling filed July 7, U.S. District Judge George Wu delivered good news to the outside directors of failed corporate credit union WesCorp but the message was mixed because Wu brought news they did not want to hear to WesCorp’s former top executives.
This is because, in his tentative ruling, Wu said he intended to proceed with dismissal of charges against WesCorp’s outside directors, a roster that includes CUNA's Bill Cheney, Robert Harvey (CEO of Seattle Metropolitan Credit Union), James Jordan (CEO of Schools Financial CU), Timothy Kramer (CEO of KeyPoint CU), Robin Lentz (CEO of Cabrillo CU), John Merlo (CEO of Premier America CU), Gordon Dames (former CEO of Mountain America CU), Warren Nakamara (CEO of Honolulu Federal CU), Brian Osberg (CEO of Potelco United CU), David Rhamy (stepping down this week as CEO of Silver State Schools CU) and Sharon Updike (CEO of Eagle Community Credit Union).
All are named defendants in the NCUA filing.
However, Wu indicated he planned to deny motions to dismiss charges against the former WesCorp officers, namely Robert A. Siravo (WesCorp's former president/CEO), Todd M. Lane (former chief financial officer), Thomas E. Swedberg (former vice president) and Robert Burrell (former executive vice president). Cases against the officers thus would proceed to trial.
All this is in line with indications Wu had given as long ago as January. The July 7 ruling represents no change in the judge’s thinking.
Wu, a painstaking jurist, did leave the door open for further filings from any of the impacted parties, with additional argument, if any, tentatively scheduled for July 25.
