ALEXANDRIA, Va. (7/3/12)--Former Western Corporate FCU (WesCorp) employee Thomas Swedberg has agreed to the terms of a National Credit Union Administration (NCUA) cease and desist order that would prevent him from working for any federally insured corporate credit union.
Swedberg was the director of human resources for the former $34 billion corporate credit union, and was one of five former WesCorp employees that were sued by the agency.
The order, which was released to the public by the NCUA last Friday, bans him from:
- Becoming an employee of, holding any office in, or otherwise participating in any manner in the conduct of affairs of any federally insured corporate credit union;
- Consulting or advising any federally insured corporate on any matters involving or relating to investment securities, investment policy, or investment strategy; or
- Selling any investment securities to any federally insured corporate credit union.
Swedberg consented to the order, without admitting fault, the NCUA said.
The NCUA in its lawsuit against former senior WesCorp officials had alleged that they were negligent in monitoring mortgage-backed security investments that were made by the corporate, and that there was a breach of fiduciary duty and fraud related to these investments, which resulted in $6.8 billion in portfolio losses. The WesCorp employees filed counterclaims and affirmative defenses against NCUA, alleging the agency was aware of WesCorp's investment strategies and approved of and encouraged the strategies.
Swedberg was not involved in the purchase of these failed investments, but was among those who received payments through WesCorp's Supplemental Executive Retention Plan, netting a lump sum of $1.2 million in 2008.
The former WesCorp employee and the agency filed a settlement agreement with a federal court in Los Angeles, dismissing the case against him, in April of this year. Former WesCorp Chief Risk Officer Timothy Sidley and Chief Investment Officer Robert Burrell have also agreed to cease-and–desist orders with the agency, and settled the charges against them.
Former WesCorp President/CEO Robert Siravo and Chief Financial Officer Todd Lane have not settled with the agency.