NCUA's complaint against WesCorp amended to include fraud
09/01/2010 08:43 am
The suit still includes original charges of breach of fiduciary duties and negligence allegedly committed by former WesCorp executives and former directors.
Defendants allegedly failed to impose prudent concentration limits on private-label, mortgage-backed securities, particularly option ARMs. The NCUA seeks damages in excess of $1 billion.
New charges were filed against Siravo, Lane and a new defendant, former Vice President Thomas E. Swedberg, concerning amendments they made to their Supplemental Executive Retirement Plans. The NCUA accuses Siravo and Swedberg of fraud and breach of fiduciary duty for damages of $3 million. The regulator seeks an additional $1.4 million in damages from Siravo for breach of fiduciary duty and Lane for unjust enrichment in connection with his unauthorized SERP payout.
Siravo and Swedberg stand accused of defrauding WesCorp’s board into authorizing payment amendments for them, and making unauthorized changes to Lane’s payout. The suit also alleges that as CFO, Lane should have known better.