Lane Requests Written Proof He Dictated WesCorp’s Investment Risk
Todd Lane, former Western Corporate Federal Credit Union executive vice president/chief financial officer filed a set of documents in U.S. District Court June 20, requesting documentation from plaintiff NCUA that proves Lane “dictated revenue targets to be achieved by the investment department.”
The request is a legal response to the NCUA’s claims that the failed WesCorp’s budget mandated particular levels on investment and net interest income, and as a result, dictated the level of risk in its investment portfolio. Lane had previously filed a motion to dismiss that complaint.
Documents requested by Lane include all evidence the former CFO had a role in WesCorp’s budget process, evidence of his alleged breach of fiduciary duty, and a list of individuals who support the claim that Lane dictated revenue targets to be achieved by WesCorp’s Investment Department.
Lane also requested details regarding the anticipated testimony of former WesCorp Chief Risk Officer Timothy Sidley and former Chief Investment Officer Robert Burrell, including Burrell’s settlement agreement with the NCUA.
Burrell was the subject of a May 17 cease and desist order from the NCUA, banning him from working with or for corporate credit unions, but allowing him to work with or for natural person credit unions. The order was part of a settlement reached between the two parties, according to May 16 court documents. Burrell currently operates his own ALM advisory firm, ALM ViewPoint, based in the Los Angeles suburb of LaVerne.
Sidley settled with the NCUA March 2, reportedly in exchange for his testimony against his co-defendants, which at the time included former CEO Robert Siravo, former Human Resources Director Thomas Swedberg, Lane and Burrell. However, neither side was willing to confirm the details of the settlement on record, other than a prohibition order issued by NCUA that banned Sidley from all federally insured credit unions, both corporates and retail.
Defendant Siravo has not yet settled with the NCUA.
The requested documents are due to Lane’s attorneys by July 20.
WesCorp was seized by the NCUA March 20, 2009, following investment losses that were primarily the result of high concentrations of private label mortgage backed securities.