The NCUA has announced a cease-and-desist order against another defendant in the Western Corporate Federal Credit Union lawsuit, with terms similar to others who are banned from corporate credit unions, but not natural person.
Former WesCorp Human Resources Director Thomas E. Swedberg consented to the order without admitting fault, and is prohibited from becoming an employee of, holding any office in, or otherwise participating in any manner in the conduct of the affairs of any federally insured corporate credit union, the agency said in its announcement Friday.
The former human resources professional, who had no known role in WesCorp’s investment strategy, is also banned from consulting or advising any federally insured corporate credit union on any matters involving or relating to investment securities, investment policy or investment strategy; or selling any investment securities, directly or indirectly, to any federally insured corporate credit union.
Swedberg’s role in the WesCorp lawsuits involved alleged fraud involving a scheme to increase Supplemental Executive Retirement Plan payouts for himself, former CEO Robert Siravo and former CFO Todd Lane.
According to an NCUA release, the order was one of the terms of the settlement agreement between Swedberg and NCUA to settle the potential claims against him, stemming from the conservatorship and eventual liquidation of WesCorp.
The NCUA filed the settlement agreement with Swedberg in Los Angeles federal court April 16, with the stipulation that a future settlement conference between the two parties would be conducted off the record.
That leaves just Siravo and Lane as the only remaining defendants who have not yet settled with the regulator.
Lane’s legal team filed court documents June 20 demanding proof he “dictated revenue targets to be achieved by the 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.