RICHARDSON, Texas — Building the Texans Commercial Capital LLC business lending CUSO to a highly successful entity, three former executives have filed a lawsuit against $1.7 billion Texans Credit Union and Texas Capital after claims of being fired when discussions began on exploring other options to expand the CUSO.
In an article in today's Dallas Business Journal, the publication reports that John C. O'Shea, former president/CEO of Texans Capital, Paul J. Valdez, former senior vice president/CFO and Joel B. Fox, former executive vice president/COO, filed the suit in December 2006.
The executives said they built a commercial business lending program, which later became Texans Capital, to $745 million in loan commitments and $580 million in loans outstanding. The CUSO was formed because Texans CU was about to hit the 12.25% member business lending cap, the publication reported. Credit union executives later considered selling some of Texans Capital to a larger CU with a higher commercial lending cap or converting the CU to a bank.
Recommended For You
The former executives claim that they never received financial incentives commonly known as "golden handcuffs" to keep them form leaving the company, according to the article. On Aug. 2, 2006, all three were fired.
Texans CU has denied the allegations, the publication reported. The trial is set for Oct. 9. A comment from Texans CU or Texans Commercial Capital was not immediately available.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
