The NCUA served 18 former executives and directors of U.S. Central with demand letters, alleging their breach of fiduciary duty contributed to the conserved corporate's losses.
The move was necessary to meet the June 30 deadline to file a notice of claim with Travelers Casualty & Surety Co. to preserve the agency's right to full coverage provided under U.S. Central's directors and officers liability policy.
Does the NCUA, which served legal papers to sitting corporate executives and new CUNA CEO, Bill Cheney, intend to file suit against the high-profile volunteers? Director of Public and Congressional Affairs John McKechnie said NCUA's move was merely "a matter of protecting our position while we complete our investigation."
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