Former WesCorp Chief Financial Officer Todd Lane, in a point bypoint rebuttal submitted to presiding Judge George H. Wu as part ofthe ongoing litigation that pits NCUA against the former officersof WesCorp, has taken on every charge leveled against him by theNCUA.

And, in the bargain, Lane has renewed his call for the NCUA topermit payment of his legal fees, now in excess of $100,000,according to the Oct. 31 filing.

The trigger for the litigation is the collapse of WesCorp, anevent alleged by the NCUA to be due to the misconduct of itsonetime senior executives, Lane included.

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At the heart of Lane’s denial of the NCUA charges against himappears to be a three-fold argument. At all times WesCorp boughthighly rated, AA and AAA, instruments sold by reputable financialservices firms; the investments were overseen and approved byWesCorp’s board; and, third, “the NCUA’s claims are barred, inwhole or in part, by the NCUA’s knowledge, acquiescence,ratification, approval, participation in and/or oversight ofWesCorp and WesCorp’s investment strategies, risk-assessmentefforts, purchases of MBS securities and otheractivities.”

That is to say, whatever WesCorp did, NCUA had full knowledge inadvance because of its oversight, Lane’s filing claims.

Lane also invoked the so-called business judgment rule. “Everyact or omission challenged by the NCUA was made after reasonable investigationand in good faith. Lane had reasonable grounds to believe that suchacts or omissions were reasonable and prudent under thecircumstances, meeting or exceeding the custom and practice in theindustry, and undertaken in what Lane honestly believed to be thebest interest of WesCorp.” That is, Lane claims to have exercisedsufficient business judgment to assert that his decisions were madein good faith and thus cannot be successfully legallychallenged.

As regards legal fees, Lane claims the “NCUA as liquidator ofWesCorp is liable for WesCorp’s obligation to pay Lane’s defensecosts incurred in this litigation.... Lane has incurred damages asa result of the NCUA’s failure to pay his defense costs incurred inthis litigation and will continue to incur damages as a result ofthe NCUA’s continuing refusal to pay his defense costs, in anamount to be proven at trial, and in excess of $100,000.”

Asked for comments, both Lane and his lead attorney emailed thatthey were not available. The NCUA declined to comment.