Following some legal jousting over governance issues, aMilwaukee judge put off until next Tuesday naming of a receiver ofCentral States Mortgage Co.

Meeting with more than a dozen lawyers representing CSMC, bankand CU creditors and the prior management ousted last year,Milwaukee County Circuit Judge John DiMotto said he was putting offa receiver ruling in the bankruptcy-type proceeding while awaitingmore financial data from CMS.

Attorney Stephen Kravit, representing former CEO Richard Jungenand other ex-executives, called on the court to pick a receiverwhile management of CSMC, majority owned by 25 Wisconsin andIllinois CUs and the Wisconsin Credit Union League, asked the courtto name Morris Anderson & Associates, a Chicago-managementconsulting firm advising underperforming businesses to be thereceiver.

Citing what he said were illegal votes taken by the CSMC boardbefore and after the CUSO's March 9 collapse on various issues,Kravit charged the CUSO "is a lawless company" and is improperlyspending funds to defend itself.

CSMC attorney David Meany countered the firm is being properlygoverned by its board, which includes Dean Wilson, chairman of theWisconsin League and president/CEO of Focus CU in MenomoneeFalls.

In a press statement, Wilson, CSMC chairman, said simply "thematter before the court will be decided based on the law andfacts," adding "our primary concern is doing what is best for ourcustomers, creditors, and former employees by providing an orderlytransition of our business." Among major CSMC creditors is MembersUnited Corporate FCU of Warrenville, Ill. owed $32.5 million on adefaulted funding loan.