Stuart Perlitsh, CEO of Glendale Area Schools Federal Credit Union, said his board of directors voted to recover its WesCorp capital losses, some $1.24 million, because members deserve accountability from those responsible.

At $338 million in assets, the California credit union is the largest of seven plaintiffs suing 25 current and former WesCorp employees and volunteers for negligence and breach of fiduciary duties.

WesCorp's losses weren't merely due to bad luck or a market bubble burst nobody saw coming, Perlitsh said. Rather, the defendants invested a far greater percentage of the corporate's assets in nonagency mortgage-backed securities than did volunteers and officers at other corporates. He called their actions "reckless" and "unreasonably leveraged".

"WesCorp did not borrow $10 million for natural person credit union liquidity," Perlitsh said. "They borrowed $10 billion to play investment banker on Wall Street."

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