WesCorp Defendants Seek to Depose NCUA
According to documents filed by the U.S. District Court for the Central District of California under Judge George Wu, the defendants, Robert Siravo, Todd Lane, Robert Burrell, Thomas Swedberg and Timothy Sidley, are seeking to question agency staff about mortgage-backed securities WesCorp purchased from J.P. Morgan Securities, RBS Securities and Goldman Sachs & Co.
“The NCUA, through its OCCU examiners, consistently approved of WesCorp's investment strategies and investment concentrations, including WesCorp's investments in option ARM MBS, lower tranche MBS and reduced documentation MBS,” Siravo argued in an Oct. 31, 2011, filing. “On information and belief, the NCUA knew and approved of WesCorp's investment strategies and risk management efforts,” Siravo wrote, adding, “In those instances, to the extent there were any, where the NCUA raised any concerns regarding WesCorp's risk assessment efforts, WesCorp promptly addressed those concerns, and the NCUA and the WesCorp board subsequently approved of WesCorp's remedial efforts.”
Legal experts who spoke about the possible depositions speculated that this defense may be one of the lines of argument that could be supplemented by what might be uncovered in depositions.
A third attorney speculated the deposition might prove a tough fight but would not predict that some sort of deposition was out of the question.
“Judges are loathe to interfere with the discovery process,” he observed, “because they know this is one key reason a lot of cases are settled. Also, courts have a lot of discretion about what they will allow in discovery.”