In a tentative ruling filed July 7, U.S. District Judge GeorgeWu delivered good news to the outside directors of failed corporatecredit union WesCorp but the message was mixed because Wu broughtnews they did not want to hear to WesCorp's former topexecutives.
|This is because, in his tentative ruling, Wu said he intended toproceed with dismissal of charges against WesCorp's outsidedirectors, a roster that includes CUNA's Bill Cheney, Robert Harvey(CEO of Seattle Metropolitan Credit Union), James Jordan (CEO ofSchools Financial CU), Timothy Kramer (CEO of KeyPoint CU), RobinLentz (CEO of Cabrillo CU), John Merlo (CEO of Premier America CU),Gordon Dames (former CEO of Mountain America CU), Warren Nakamara(CEO of Honolulu Federal CU), Brian Osberg (CEO of Potelco UnitedCU), David Rhamy (stepping down this week as CEO of Silver StateSchools CU) and Sharon Updike (CEO of Eagle Community CreditUnion).
|All are named defendants in the NCUA filing.
|However, Wu indicated he planned to deny motions to dismisscharges against the former WesCorp officers, namely Robert A.Siravo (WesCorp's former president/CEO), Todd M. Lane (former chieffinancial officer), Thomas E. Swedberg (former vice president) andRobert Burrell (former executive vice president). Cases against theofficers thus would proceed to trial.
|All this is in line with indications Wu had given as long ago asJanuary.The July 7 ruling represents no change in the judge's thinking.
|Wu, a painstaking jurist, did leave the door open for furtherfilings from any of the impacted parties, with additional argument,if any, tentatively scheduled for July 25.
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