Lane to Succeed Shepard at Cal Coast
Todd Lane, who was targeted in a NCUA lawsuit over the failed $23 billion Western Corporate Federal Credit Union in 2009, will become the next president/CEO of the $1.8 billion California Coast Credit Union.
The San Diego-based credit union announced June 12 that its President/CEO Marla Shepard will retire in early 2015. She was formerly president/CEO of First Future Credit Union, which merged into Cal Coast in 2008. She began her credit union career in 1972 as a teller.
Lane will serve as interim president until Shepard's retirement, according to the Cal Coast announcement. He joined Cal Coast in 2009.
In 2010, Lane was named as a defendant in a lawsuit that alleged breach of fiduciary duties and negligence. Other defendants included three other former WesCorp executives and 11 former directors.
The lawsuit charged that the defendants allegedly failed to impose prudent concentration limits on private-label, mortgage-backed securities, particularly option ARMs. The NCUA sought damages from the defendants in excess of $1 billion.
But Lane filed for dismissal of the charges, claiming the NCUA made no specific allegations against the former WesCorp CFO, did not explain how Lane was in breach of fiduciary duty or say how Lane's actions led to WesCorp's billion-dollar losses.
“There is not a single allegation that Mr. Lane had the responsibility for concentration limits, that he played a role in setting them, or even that he had the authority to weigh in on them,” the memorandum in support of the motion to dismiss stated in December 2010.
In addition to his attempts to dismiss the NCUA's charges against him, Lane argued in legal filings in 2012 that WesCorp, and subsequently the NCUA as the failed corporate's liquidator, were responsible for his more than $100,000 in legal fees and damages.
Finally in January 2013, the NCUA settled its lawsuit against Lane in a confidential agreement.
In its statement announcing Shepard's retirement, Cal Coast did not offer a specific date when Lane would take over as president/CEO.
“The dedication and exceptional member service by the employees and the loyalty of our members have made California Coast what it is today,” Shepard said in the statement. “With their continued support, the board and senior management's leadership, and Todd at the helm, I know Cal Coast's future is in good hands.”
During her career, Shepard garnered numerous awards including recognition by the California Credit Union League's advocate of the year award in 1998 and 2006. She also was honored with the California league's Distinguished Service award in 2006.