With the first half of February having ended, something appears sorely awry at Priority One Credit Union in South Pasadena, California. Following our last post, President Charles R. Wiggington, Sr. hurriedly implemented changes which appear to be just more of his habitual “quick fixes”, intended to quickly and frantically, instigate a sudden spurt of unprecedented growth, in new business. Regrettably, the catalyst forcing the President’s frenetic efforts is quite simply, a gross inability by Priority One to obtain new business.
Before we describe the numerous and sudden changes recently introduced by the President, we have good news to report. Priority One ended 2011 in the BLACK. This is a tremendous improvement over their performance in the years of 2009 and 2010, both of which ended with the credit union deeply immersed in the RED. Usually, ending the year in the BLACK might suggest that the President introduced improvements derived from sound planning and which fostered, growth. Unfortunately, this is not the scenario at Priority One Credit Union which was forced to close three branches in the years of 2010, though 2011 and who terminated a large contingent of highly experienced employees, reduced budgets critical to the promotion of products and services, and eliminated employee benefits, all in a period of less than three (3) years.
In our last post, we revealed that during the months of November and December, 2011, the President publicly exclaimed that Priority One was well grounded and on the road to success. To support his assertions, the President cited the credit union’s “immense amount of capital” as the only evidence of the credit union’s reversal of fortune. We also described his numerous proclamations which we knew, were another ruse by the chronically dishonest President to divert attention from the credit union’s troubles. His verbal campaign was also designed to dupe members, employees, and representatives of other credit unions of the credit union’s actual financial state.
During the month of January, his boastings ended abruptly and during several meetings conducted at the end of the month, the President revealed to some of his managers, that Priority One is in deep financial straits and in desperate need of new business. He also warned that failure to obtain new business could further reduce the credit union’s already diminished size.
At the end of January, the President and some members of the Board of Directors, entered into another campaign, in which some denied all allegations of wrong doing committed by the President, some of his staff and some members of the Board. They also stated that alleged wrong doing reported on this blog over the past three (3) years constitute lies used to attack the President’s good character. Some of the denials include:
BUT FIRST…..
PRIORITY ONE CREDIT UNION
SETTLES
THE LAWSUIT
FILED BY
FORMER BRANCH MANAGER,
LINDA NISELY
Despite the President’s adamant denial that Priority One has ever been sued by former employees, the Credit Union recently and voluntarily, settled the lawsuit filed by former Burbank Branch Manager, Linda Nisely.
Though the Defendant and Plaintiff were strictly prohibited from divulging details about the settlement, at least two members of the Board, found it impossible to adhere to the rules governing confidentiality and confirmed Ms. Nisely’s lawsuit is now resolved. Credit Resolutions Manager, Yvonne Boutte, also divulged that Mrs. Nisely recently paid off her former delinquent Priority One loan. According to Mrs. Boutte, efforts to collect on the formerly delinquent loan, had proved fruitless, adding that each time a member of her staff spoke to Mrs. Nisely trying to collect upon the former debt, they were bluntly told, ”I am a former employee and am suing the credit union.”
The settlement is almost an unexpected surprise when one considers President Wiggington’s boasting over the past several months, asserting that Priority One’s attorneys had amassed more than sufficient testimonies that would prove Mrs. Nisely was an inept manager, unwilling to promote business, abusive to some of her staff and a racist. So what could have happened?
The decision to “settle” followed conversations between the President, the Board of Directors, and the credit union’s attorneys, who after careful consideration, thought it prudent to avoid a court trial. Yes, it was the credit union versus the Plaintiff, who sought resolution outside a court setting. The matter is now settled and based on the credit union’s own disclosures, it is the Plaintiff who walks away the victor.
Though we are glad Mrs. Nisely won, the settlement robs us of the opportunity to eventually review court transcripts describing the alleged illegal acts committed by and under President Wiggington including abuses carried out by former COO, Beatrice Walker, and the credit union’s infamous, Human Resources department.
The following record, obtained from the Los Angeles Superior Court, confirms dismissal of Mrs. Nisely’s lawsuit.
The “Request for Entry of Dismissal” (with prejudice) reveals both parties- the Plaintiff (Mrs. Nisely) and the Defendant (Priority One Credit Union), agreed to a voluntary dismissal of the lawsuit before it was presented to a judge. Though the settlement constitutes an amicable agreement, it serves to confirm that Priority One agreed to pay a monetary settlement to Mrs. Nisely, who in turn, voluntarily cancelled the lawsuit. We extend our congratulations to the Plaintiff and her attorney.
SPINNING A WEB OF LIES
Based solely on the President’s current insistence that Priority One has never been sued, it is obvious he doesn’t comprehend that a lawsuit was filed at the Los Angeles Superior Court which resulted in the obtainment of numerous depositions during 2011. It was also the lawsuit which led to mediation proceedings and which culminated in the settlement of the Plaintiff’s (Linda Nisely) lawsuit.
We aren’t surprised that an understanding of the simplest aspects of the processes governing a lawsuits, seems to elude the chronically confused President. It is this same inability to comprehend the obvious, which has impeded Charles R. Wiggington, Sr.’s abilities to introduce profit-producing changes to a credit union whose major deficiency is the gross inability to overcome the challenges it faces. It is also this chronic hindrance which has impeded resolution of the mountain of problems created by the President and the Board of Directors. It is the President’s limitations which again serves to resonate our assertions that the appointment of Charles R. Wiggington, Sr. to the post of President and CEO was a catastrophic lapse in judgment by the horrendous Board of Directors under its grossly inept, Chairperson, Diedra Harris-Brooks.
Unable to acquire a time machine, Mr. Wiggington has committed himself to alter documented history. His efforts have recently been aided by the same Director who is best known for his 2008 statement that “O.J. was setup by the White man.” (Not so surprisingly, he never specified which White man “setup” O.J. Simpson). It is also this same Director who failed to pass the California Bar Exam on several occasions and who for years, served as a United States Clerical Postal Supervisor before being transferred to his current capacity, as a postal carrier. The Director has also told members and representatives of other credit unions that Priority One’s performance is nothing short of “great” and echoed the President’s statements that what is reported on this blog constitutes lies while adamantly denying that Priority One has ever been the subject of lawsuits filed by former employees. The President and the Director have chosen to ignore some critical documented facts which include:
To jolt the President’s memory, we’ve decided to republish to documents presented on this site in 2011. One, verifies that a lawsuit was filed in 2010, by former Burbank Branch Manager, Linda Nisely, while the second is a response by Board of Directors Chairperson, Diedra Harris-Brooks, describing the Board’s determination regarding a former employee’s allegations, she was sexually harassed by President Wiggington.
Lawsuit
Evidently, Charles R. Wiggington, Sr. is the last officer of the credit union to realize Priority One was sued by Mrs. Nisely and that the credit union, recently entered into a settlement with the Plaintiff.
Sexual Harassment
The second paragraph states:
“Based on the facts available to us, we have concluded that NUMEROUS EXCHANGES occurred between you and Ms. Burke during the course of her employment at the Credit Union. Behavior during this time included exchanges initiated by both YOU and Ms. Burke, and Ms. Burke also alleged that as improper gesture and comment was made by you at an office holiday party approximately four or five years ago. Given OUR understanding of the circumstances, we do not believe the nature of the exchanges rises TO THE LEVEL of an UNLAWFUL HOSTILE ENVIRONMENT.”
So what level of an unlawful hostile work environment did Mr. Wiggington’s “exchanges” achieve? Slightly unlawful? On the cusp of unlawful? Walking the edge between lawful and unlawful?
We hope we’ve helped dispel any confusion experienced by the President in recent weeks. The FACTS, unlike his verbal denials, prove Priority One Credit Union was in sued by former Burbank Branch Manager, Linda Nisley. The FACTS prove an investigation was conducted by EXTTI, Inc. in 2008, which gathered evidence in the form of employee statements, regarding inappropriate and sexualized verbalizations and acts committed by the once, all too frisky President.
For the moment, Priority One can close its books on the first of its legal conundrums and can expel a huge MOMENTARY sigh of relief.
WILL THE BURBANK BRANCH CEASE TO EXIST?
As we’ve reported month after month, Priority One has found itself mired in a metaphorical tar pit with no indication if it will ever escape its troubles. During several meetings conducted during the month of January, President Wiggington met with members of his managerial staff, describing changes he was about to initiate and all intended to attract new business, quickly and in substantial amounts. What is acutely clear is that the President appears confused and somewhat delusional in what he expects to achieve. Since January 1, 2007, he had more than five years to implement well-planned strategies, introduce imaginative and attractive campaigns, and introduce new and innovative methodologies which could have produced new business over a reasonable period of time. Instead, he is hoping to produce immense of profit over a period of a few weeks. We can conclude that his goal must be met by April 2012 or as he has revealed, he will be forced to close the Burbank branch sometime in May (2012).
Historically, the Burbank branch has performed poorly for years. In 2011, AVP, Sylvia Perez announced proudly that the branch experienced a large amount of walk-in traffic, boasting that the branch excelled in Shared Branching. Unfortunately, the branch failed to procure the level of loan applications needed to justify the $5200 paid in rent each month.
In 2009, former COO, Beatrice Walker, targeted the Burbank branch for closure, but her plans changed when she became fixated in exacting vengeance upon the then Manager of the Valencia branch.
In November and December 2011, President Wiggington in company of Senior Vice President, Rodger Smock, frequently visited the Burbank office. The appearance of the two could be viewed as a harbinger of bad news, since this is the same behavior the two demonstrated just prior to announcing closure of the Valencia branch. $5200 seems a paltry amount to reference as the excuse for closing Priority One’s only branch serving the cities of Burbank, North Hollywood, and Glendale. Though the credit union does maintain an office in the city of Van Nuys, off the 405 freeway, the location is inconvenient to members residing and working east of the branch. We doubt Shared Branching will be selling point should the Burbank office close and we know, that this will have an adverse effect on those members who are also employees of Providence St. Joseph Medical Center.
The President’s statements also prove that his claims to high capital as evidence to the credit union’s alleged success, was nothing more than hyperbole. Closure of the Redlands, Riverside and Valencia branches and termination of former COO, Beatrice Walker were pivotal factors in creating the surge in capital. The President focused on increasing capital instead of developing new business, in the hopes of lending a brutal blow against his critics who had labeled him a failure.
In 2010, the President was told by the NCUA that he must find a way of elevating new business or close one of the credit union’s least profitable branches. The COO, President and CFO determined closure of the Redlands branch due to its inability to generate a sufficient level of new business and because of the amount monthly rent spent to space occupied by that location. Closure of the Redlands branch proved insufficient to offset the credit union’s mounting financial problems and so the President had to select closure of another branch office. Though Burbank was the office producing the least amount of new business, Beatrice Walker targeted Valencia in an attempt to exact her vengeance against its former Manager and so at the end of October 2011, the Valencia branch closed its doors.
Again, the President found that the closures of the two branches failed to resolve the credit union’s inability to produce positive income and so, in 2011, it was decided to close the small, Riverside branch which had operated on a part-time basis.
By mid-2011, President Wiggington relaxed, watching the credit union’s capital rise due to far flung reductions begun by COO, Beatrice Walker, and continued by him and CFO, Saeid Raad, following termination of the COO.
In February 2012, President Wiggington is again faced with the same problems the credit union faced in 2008, 2009, 2010, and 2011- a lack of new business. Mr. Wiggington would like the credit union industry to believe that the problem is the national economy and the mistakes committed by the former COO, but the problems are rooted in his failure to focus on the development of new business and resorting instead, to divestiture as a means to survival. Mr. Wiggington’s failures include hiring inept personnel, like himself, whose performance exacerbated the credit union’s record of failures.
During the all-staff meeting conducted on January 5th, President Wiggington assured employees all was well at the credit union though lightly touching upon the importance of reaching out to the communities served by the credit union, for the purpose of acquisitioning new business. Within days following the meeting, President Wiggington conducted several meetings and met with Senior Vice President, Rodger Smock; Loan Manager, Joseph Garcia; and with the collections Manager, Yvonne Boutte. During each meeting, the President expressed deep concern over the credit union’s inability to attract member interest in their aged consumer loan portfolio and ordered that each exact whatever methods are needed to create a sudden and large surge in new business or else, Priority One Credit Union could be forced to merge with another credit union or be ordered to close down its operation. He also stated that under his revamped efforts, there will be zero tolerance of any employee who complains or refuses to attain their newly assigned goals. And finally, if goals are unmet, he will have to close down the Burbank branch as early as this May.
Deeply concerned, AVP, Sylvia Perez has begun scouting for new locations throughout the city of Burbank, though focusing on downtown Burbank because its high concentration of businesses. To her surprise, she has learned that the cost to lease a space in downtown Burbank is higher than the $5200 paid for the present location. Mrs. Perez may not comprehend that closure of Burbank is to reduce expenses and again, increase capital though unlike 2008 through 2011, the President must now actually acquire new business or Priority One’s days in business will assuredly be numbered.
Closure of the Burbank office will save whatever money was spent to lease the space, eliminate utility costs for the location, and of course result in the termination of some employees currently assigned to that office. It will also deprive members in that community, of a convenient branch location. So if the President’s staff is unable to achieve their assigned goals, then based solely on President Wiggington’s statements, we can expect more cut-backs including closure of the all too obscure and poorly performing, Burbank branch. If Burbank does close, this will constitute the fourth such closure in an approximate two-year period.
In 2007, President Wiggington inherited a promising and reputable credit union who at the time, possessed an ability to attract new business. As a result of his ship shod leadership and pride, which has chronically clouded his vision, the inept President eliminated the once effective Marketing Department, reduced advertising, compromised quality member service, forced the credit union to lose sight of their branding and muddled the credit union’s purpose. In fact, a study of their web site reveals there is nothing the conveys who they are as a credit union. Within a highly competitive industry, they’ve become ineffective and invisible.
MASKING FEARS
The President’s frantic efforts to create new business appear perfunctory, as we’ve yet to witness Charles R. Wiggington, Sr. create a SINGLE well-purposed campaign, driven by real exertion of physical and mental power which results in profit. In fact, to date, the credit union has failed, quite miserably may we add, to live up to their hype they are a “financial fitness center” able to help members “win with money.” It hasn’t helped that at the onset of 2012, Priority One Credit Union has three less branches than it had on January 1, 2010 and may lose another later, this year. The President’s fears of another branch closure or worse yet, merger of the credit union, are according to two managers, being fueled by a warning issued to him by the NCUA, warning that these events might occur unless he quickly resolves the credit union’s lagging business.
A forced merger would of course, be necessary, when one considers Priority One has nothing that would make it attractive to a potential buyer. If a merger were to occur, President Wiggington would find himself quickly displaced and it is highly doubtful he is deemed sufficiently qualified to be picked up by any self-respecting credit union or bank.
It should seem strange that over the past five years, from 2007 through the present, the President failures to promote growth are nothing less than astounding. Whether due to a lack of experience or skills or merely an inability to find the inspiration, the President failed at any alleged effort intended to create new business. Instead, he spent years hiding the credit union’s financials, hiring Beatrice Walker to serve as the credit union’s first and possibly, last COO, wasting tremendous amounts of money on purchasing a poorly functioning telephone system, redecorating, and ensuring his executive staff were handsomely rewarded even though they accomplished nothing.
His frantic efforts to increase business over the next 60 days appear more of a “wish” than a well-planned and structured campaign. He hopes his staff will accomplish the task they’ve been given and acquire a titanic level of new business though ignoring the inarguable facts that members and potential members may be hesitant to enter into new debt due to the current economic climate. Furthermore, the credit union’s loan eligibility requirements are more stringent in 2012 than they were in 2009 and has been proven recently, the majority of all loan applications received by Priority One over the past year, have been denied due to adverse credit references in applicant credit reports. Furthermore, the majority of those who are approved, often forgo in financing the loan.
This past January, excited and overly enthused CLO, Cindy Garvin, issued notice to all employees, commending the Call Center for having acquired a total of 14 automobile applications which she credited to the Call Center’s diligent efforts. Their feat proved, according to the CLO, that all employees could do the same. Unfortunately, the accolades were premature and presumptuous. Anyone with as much experience in loan processing as Ms. Garvin should have known that receipt of a loan application is never synonymous with actual loan funding. By the end of January, most of the 14 applications were denied on the basis of poor credit while at the beginning of February, two remained in pending status which means that throughout January, none of the few approved requests, were funded. Evidently, actual funding of the approved loans took a back seat to boasting.
Under the President’s new agenda, all departments and branches have been assigned monthly goals. Employees will also begin cold calling. Applicants whose consumer loan applications have been approved, will be called at their homes on Wednesday evenings, to remind them their loan application was approved. The Business Development team and all AVP’s, are now under authority of newly appointed AVP of Sales and Business Development, Joseph Garcia. Yes, this is the same Joseph Garcia who was promoted by shamed former COO, Beatrice Walker, to the position of Call Center Supervisor, Consumer and Real Estate Loan Officer, and Credit Manager, back in early 2010. By January 2011, his authority over the Call Center and the Real Estate Loan Department, had been removed due to his inability to manage either. More about Mr. Garcia, later in this post.
The President has also vehemently stated that if the amount of new business is not attained within the next two to three months, he will have to undertake more drastic measures, including:
We can confidently conclude that contrary to the President’s November and December’s boastings, Priority One is not doing well at all, business is not so much up as it is “way down” and the “excessive capital” bragged about by President Wiggington, is not evidence of success but points to real, deep rooted problems threatening the operation as confirmed by the President and some of his staff.
In December (2011) former Loan Manager, Joseph Garcia, revealed that Chief Loan Officer (“CLO”), Cindy Garvin, was under tremendous stress. Describing Ms. Garvin as a “nice person”, he said she was constantly bombarded with demands by the President, to increase consumer loan funding. Mr. Garcia also recently divulged that Ms. Garvin had been called to a Board meeting and asked why business is not improving. The question is one the Board thought logical in view of their very illogical and unwavering support of President Wiggington over the past five years. It is also a logical question to a Board whose Directors have little comprehension of financials along with their proven ability to circumvent ethics like Superman scales tall buildings in a single bound. It shouldn’t surprise anyone with a modicum of intelligence that the Board believes one person- Ms. Garvin, can come in and unravel the horrendous mess created by President Wiggington, former COO, Beatrice Walker, and Senior Vice President, Rodger Smock. Oh yes, and the messes perpetuated by the Board of Directors under leadership of Chairperson, Diedra Harris-Brooks.
The credit union’s troubles have been further magnified by the revamping of the Real Estate Loan department, which now only finances Home Equity Lines of Credit (“HELOCs”). Applications for all other types of mortgage loans which were until several months ago, funded by the credit union, are now referred to CU Mortgage. CU Mortgage in turn, pays Priority One a fee (“finders fee”). Before resigning in 2011, former Real Estate Loan Manager, Yuling Li, warned President Wiggington and CLO, Cindy Garvin, that elimination of all but the HELOC loans would prove counter-productive and undermine the credit union’s need to instill growth and produce profit. In 2011, Mr. Wiggington admitted the credit union cannot afford to finance first mortgages though we wonder why, if the credit union is immersed in excessive capital? In January, the President complained that the terms assigned to first mortgages are “too long” to “turn a fast return” reminding us that this is a President who wants quick fixes and quick profits without investing the time and energy needed to achieve these. Good luck Mr. Wiggington, because you’re going to need that and a lot more.
RAISING THE DEAD
In January, President Wiggington decided to increase the already burgeoning responsibilities of the Business Development team. The team which was once an actual department, thrived for many years before Charles R. Wiggington, Sr. became President and CEO of Priority One Credit Union.
In 2010, the chronically vindictive, Beatrice Walker, escalated efforts to eradicate the department, which she alleged was not fulfilling its purpose. Though she succeeded in thinning out the department and converted the once efficient machine to a skeleton crew, she could not destroy it all together. In late January and February, President Wiggington stated that the less potent, smaller, and less experienced staff members of the team, will be pivotal in helping the credit union regain its financial foothold in the marketplace.
For several years, President Wiggington and some of his management team, relegated the business development team to the darkest recesses of the credit union. Despite the abusive treatment the team was subjected to, it survived though in a less potent form. The remaining members survived Ms. Walker’s campaign and have outlived the former COO’s brief but erratic stay at the credit union. Beginning in February, the department was placed under authority of newly appointed AVP, Joseph Garcia, who offered to impart his expertise to the development department team, assuring the President that he would create a better more effective sales force. This very interesting particularly when one considers that to date, AVP, Garcia, has done absolutely nothing to help improve business. Further, he has certain limitations which impede him from fully comprehending the responsibilities of the many positions he has previously held. It is this deficiency which caused him to lose authority over the Real Estate Loan Department, back in 2010. It is also this same weakness which caused him to lose his position as Supervisor over the poorly performing, Call Center.
Here is a brief history of the team and some of the changes they were subjected to during the years preceding 2007 through 2012:
In 2007, President Wiggington ordered some Business Development staff transferred from the main office in South Pasadena and relocated to the Van Nuys and Burbank branches. Along with his disbursement of the staff, he ordered a directive that none of the business development team was to assist with branch work or functions and that Branch Managers and AVP’s must use their own staffs to accomplish these tasks. Though the directive was acutely clear, AVP, Sylvia Perez seemed incapable of comprehending the President’s directives and soon began complaining that she needed the business development representatives to help with ATM’s, answering branch phones, and helping members walking into the branch. She found an ally in Senior Vice President, Rodger Smock, who conceded to her demands and in the years which followed, forced business development representatives to assist Mrs. Perez and later, Los Angeles Branch Manager, Lynnette Forton, in assisting with branch work.
In February, Mr. Wiggington issued an allegedly “new” mandate, prohibiting Branch Managers and AVPs from using business development staff from performing branch work. Really? The President’s most recent order reminds us that he fails to adhere to the very rules he creates and that AVPs, like Mrs. Perez, have through their egocentricism, contributed in reducing the amount of new business which could have been introduced by the business development team, had their responsibilities not be continually disrupted by the personal needs of an AVP who has little comprehension of priorities and no respect for rules.
THE LATEST INCARNATION OF MR. JOSEPH GARCIA
We respect and even admire, competency and dignified behavior though we have a tendency of shunning any person who usurps these and relies instead, upon pandering and manipulation.
In February, Mr. Wiggington announced the promotion of Consumer Loan Manager, Joseph Garcia, to the newly created position of AVP of Sales and Business Development. The decision to promote Mr. Garcia to a position overseeing the creation of new business is perplexing, particularly when one considers that since 2010 though August 2011, Mr. Garcia proved incapable of conceiving and implementing a single effort which increased loan funding. In fact, during the time he served as Consumer Loan Manager, consumer loan development declined dramatically. The proof is in the credit union’s own monthly production reports, just in case the President wishes to deny the veracity of this FACT.
Beginning in August 2011, Mr. Garcia escalated his own personal campaign, proclaiming to President Wiggington that given the opportunity, he could reverse the credit union’s sagging development of new business and increase member interest in the products and services offered by Priority One Credit Union. Evidently, his purely verbal assurances hit their intended mark and the desperate President agreed to provide Mr. Garcia with the opportunity needed to miraculously produce new business.
In 2009, while serving as Branch Manager of the no longer existent, Redlands Branch, Mr. Garcia quickly developed a bond with then COO, Beatrice Walker. At the time, he assured her that he believed in her vision for the credit union and swore his undying allegiance to her efforts. Ms. Walker was so impressed, she offered Mr. Garcia a position at the main branch. She told him that she would introduce him as the temporary supervisor over the Call Center, but assured him that she would promote him quickly and over time, into an executive capacity.
Mr. Garcia agreed and within two months following his arrival in South Pasadena, was named the new permanent Call Center Supervisor.
A few weeks later, Ms. Walker added the titles of Credit Manager and Real Estate and Consumer Loan Manager, though he had no prior experience as a Credit Manager, was ignorant of Real Estate Loan procedures, and had previously carried out the duties of a Consumer Loan Processor and not Consumer Loan Officer.
In late 2010, Mr. Garcia’s authority over the Real Estate Loan department was removed and reassigned to CFO, Saeid Raad. The reason for reassignment of the department was due to Mr. Garcia’s lack of knowledge concerning real estate loan processing and what proved, an inability to learn and understand the principles governing real estate loan processing.
In 2010, Mr. Garcia’s working relationship with Collection’s Manager, Yvonne Boutte, deteriorated, causing Mrs. Boutte to exclaim that Mr. Garcia “Isn’t what he appears to be.” The decision by Mrs. Boutte to distance herself from Mr. Garcia also resulted in the first fracture in the alliance created by Beatrice Walker, who hoped that when she did become President, Mrs. Boutte and Mr. Garcia would become her most trusted officers and confidants.
By the end of 2010, Ms. Walker had estranged herself from Mr. Garcia and in January 2011, promoted South Pasadena Branch Manager, Gema Pleitez, to the position of AVP. Ms. Walker removed Mr. Garcia’s authority over the Call Center, citing that under his supervision, member complaints citing poor service, had actually increased, proving Mr. Garcia was incapable of overseeing the Call Center. Oddly enough, Ms. Walker transferred authority over the Member Services Department, to Mr. Garcia. Over the next two months, Mr. Garcia continued to oversee the Consumer Loan Department though his desk had been transferred to the Member Services Department. Two months later, Mr. Garcia’s authority over the Member Services Department was removed and he returned to sit at his desk located in the Consumer Loan Department.
Mr. Garcia began to murmur, whispering complaints that he was disappointed in Ms. Walker, describing her treatment of employees as “abusive” and “vicious.” Mr. Garcia also expressed quite concerns that he might become one of Ms. Walker’s casualties. In mid-2011, he obtained an excuse from his physician which allowed him to leave Priority One on a medical leave of absence. As Mr. Garcia’s professional life unraveled, so did his personal life which included a divorce filing initiated by his wife.
In retrospect, Mr. Garcia’s performance has been characterized by promotions and the subsequent removal of his authority over departments he couldn’t properly manage. Nonetheless, in 2012, President Wiggington promoted Mr. Garcia and appointed him authority over a sector of the operation where he has no proven documented record of success. Then again, it was Mr. Wiggington who orchestrated the hiring of Beatrice Walker in June 2009 only to orchestrate her termination on August 15, 2011.
Will Mr. Garcia succeed? Based on his record of performance while in South Pasadena, we seriously doubt so. In fact, Mr. Garcia’s promotion screams desperation by a President who has depleted his options over the past five years and has reduced the credit union’s physical and asset size. Mr. Garcia is a by-product of the way President Wiggington does business which places far more weight upon politics than competency. Over the past few weeks, Mr. Garcia has often alluded to the credit union’s precarious financial state, suggesting that he is feeling the pressure and is himself, desperate to finally vindicate himself for years of unproductivity. Like the drastic reductions and eliminations introduced in 2010 and 2011, we believe Mr. Wiggington’s present efforts are merely prolonging the inevitable. The credit union’s current problems are the result of the President’s gross limitations, his abhorrent disregard for rules, policies, laws, and employees, and chronic in-biting amongst his staff including the public power struggle between him and the former equally inept, COO, who believed she would one day be named President and CEO by the incompetent Board of Directors.
Mr. Garcia’s plans including sending every AVP into the communities served by their assigned branches. His idea, has not been met warmly, particularly from AVP’s, Gema Pleitez and Lynnette Fortson. For years, the two AVP’s refused to visit the communities served by their respective branches, alleging that they were needed within the branch.
Mr. Garcia has also ordered that the three Business Development Representatives report to work, each and every Monday, by 8 a.m. so that he may review their plans for the week, which includes the names of specific businesses they plan to visit.
Mr. Garcia has also ordered that all Business Development Representatives remain at work, each and every Wednesday, until 7 p.m., so that he may confer with each.
We find it more than a little confusing why people given the task of obtaining new business are being fettered and subjected to the micromanagement tendencies of an AVP who has yet to prove he can oversee business development efforts. Like the inept President, Mr. Garcia has proven over the past five years that he lacks the abilities required to to create formidable methods which might have scaled the looming challenges faced by the credit union. We can safely conclude that Joseph Garcia is “A jack of all trades and a master of none.” Of course, as always, we invite him to prove us wrong.
The President’s Newest Vision
On February 13, 2012, the President implemented another change, removing all authority over tellers, the Call Center and the Member Services Department, from under authority of AVP, Gema Pleitez. The departments have now been reassigned under authority of collection’s manager, Yvonne Boutte. Its interesting that Mr. Wiggington completely bypassed assignment of these departments to the highly knowledgeable Assistant Branch Manager, Virginia Contreras, who over the years has earned a horrible reputation for her condescending treatment of employees and members and her addiction to micromanaging staff.
Mrs. Pleitez, who for years, refused to leave the South Pasadena branch to visit communities and try to develop relations with existent and new business, has complained audibly, “So what happens to me?” Mrs. Boutte has expressed concerns that the added responsibilities are more than she can handle. Certainly, one area of concern is that she has no real experience overseeing tellers, member service or Call Center personnel. Still, like Mr. Garcia, she has been given authority over an area of the operation where she lacks experience.
The President has also stated that if any members of his staff refuse to attain their assigned goals, they can seek employment elsewhere.
Mrs. Perez may be the only AVP who anxiously looks forward to spending more time in the field. This has been on of her favorite pastimes, though her caustic personality and overly aggressive demeanor, has too often had a polarizing effect on her ability to obtain new business. In 2011, Mrs. Perez scheduled three meetings with Ambassadors of the credit union. No one attended the first scheduled meeting, while during the second only three ambassadors attended. Her third effort fared poorly with only four ambassadors attending. The problem facing Mrs. Perez is that she never scheduled appointments to visit United States postal facilities and was quickly turned away, when she spontaneously attempted to force presentations at postal locations.
What also seems notably absent from Mr. Wiggington’s latest ploy, is the complete lack of planning which includes reviewing member surveys, hiring companies to conduct focus group studies, or gauging the communities served by the credit union to determine what it is they need and want.
All of the changes have left us wondering, why the AVP sector continues to exist. The changes introduced by the President suggests they have been reduced to the capacity of overpaid business development personnel. Since branches will now function without their involvement, why are their titles not changed and their salaries reduced in the same way President Wiggington tried to reduce the salary of the former Marketing Director back in 2008, after demoting her to the position of Marketing Coordinator.
The one sound change made by the President in February, was promoting Sonia Villa from the capacity of Loan Officer to Consumer Loan Supervisor. Mrs. Villa is well liked by members and her responses to requests for loans, is quick and accurate. Despite her qualification for her new position, far away in Valencia, Branch Manager, Cecilia Pereyra complained that infamous Lead Consumer Loan Officer, Georgina Duenas, should have been given the title of Supervisor. We suspect that Mrs. Duenas acts which included having other employees clock her in and her abuse of assigned break times, in addition to her unresponsiveness to member requests for loans, were all critical factors in the decision which bypassed her for promotion.
The Credit Union’s production reports also reveal that they funded less than $300,000 in loans for the month of January 2012. In 2010 and 2011, President Wiggington stated Priority One must fund at least, one million dollars in loans per month, to maintain the operation and produce profit. The changes he’s currently introduced are poorly planned and as characteristic of the failed leader, lacking structure. Despite the obvious flaws, he may either believe or hope that Mr. Garcia, Ms. Garvin and every member of his staff will succeed over the months of February, March, and April to achieve the one million dollar per month target. If he hasn’t been able to do this in the years of 2007 through 2011, then it is highly improbable that he will achieve this over a three-month period.
TURNING UP THE HEAT
Aside from wasting time perpetuating false rumors of the credit union’s alleged success, the President and CLO, Cindy Garvin, have implemented mandatory overtime on some Saturdays, during which groups of employees from various branches are required to attend “training sessions” at the main office in South Pasadena.
To date, the “training sessions” have lacked the one essential ingredient of actual training. The meetings are a simplistic effort by the credit union to convey to employees the dire needed to obtain new business though omitting the one essential tool all employees require- training on how to obtain new business.
During the month of January, the new Santa Clarita branch opened. The new office, located outside the gates of the Santa Clarita Processing & Distribution Center, 28201 Franklin Parkway, Santa Clarita, CA 91383, provides access to the public whereas the other Santa Clarita branch, located within the processing center, only provides access to employees of the United States Postal Service. As we’ve described in past posts, the credit union leases the new space at a cost of $1.00 per year, which is a phenomenal savings particularly to a credit union that is not able to impact the obstacles impending the obtainment of new business. Though Mr. Wiggington spent November, December, and January proclaiming that the new location would attract a large amount of new business, logistics indicate otherwise. One factor impeding the new locations success is that it lies inconveniently outside of downtown Valencia. Though it is now accessible to all members who are not employees of the United States Postal Service, it does lie outside of the community living and working in Valencia. We also believe the President is more than well aware of the locations limitations because the new branch is only open for a few hours on Mondays, Tuesdays, Thursdays, and Fridays and will remain closed on Wednesdays. Hardly the hours of service appointed a location which is allegedly going to reap large amounts of new business. In fact, the part-time hours reduce member access to their accounts. So does President Wiggington really believe an inconveniently located branch will replace the full-service, full-time location formerly found in convenient downtown Valencia?
The credit union has also not lifted its freeze on employee salaries and is now using the excuse that if assigned goals are not met, employees will be denied raises.
Joseph Garcia also revealed during the month of January 2012, that Priority One may merge unless goals are met, while the President has threatened future lay-offs and more cut-backs, unless the credit union experiences a sudden and massive increase in new business.
Though clearly informed that the Burbank branch may be forced to close as early as May, the always stubborn and acutely dull AVP, Sylvia Perez, is expending tremendous time and energy looking for a smaller, more affordable location. She fails to comprehend that to remain in business, Priority One may have to close the Burbank branch entirely which dispels the need to find a new location. Should the Burbank office close, the credit union will undoubtedly have to terminate some or all of that branch’s assigned personnel. Due to Ms. Perez’s chronic insistence over the past two years, demanding the additional hiring of staff for the Burbank branch, that office is now over-staffed despite that the credit union’s monthly reports prove its business at that location is lagging. Amongst the branch staff assigned to that office are a long-time teller, a Business Development representative, two part-time employees and a former Real Estate Mortgage Loan Officer who due to the elimination of First Mortgages, now serves in an FSR capacity. Another employee recently returned to the Burbank branch after a brief stint in Valencia, despite the fact her services are not needed in Burbank. The reason for her return, according to Mrs. Perez, is that the employee has a “bad attitude towards the credit union.” Odd that Priority One has gotten rid of so many qualified employees who once contributed to the betterment of the credit union operation yet has chosen to keep an employee who allegedly has a “bad attitude.”
THEY’RE WORTH A LOT LESS
Contradicting the President’s former claims of success and profit, are the documented actuarials referenced in Priority One’s Financial Performance Report (“FPR”) as found at www.NCUA.gov. The report provides sufficient evidence showing a credit union’s whose net value has decreased in the millions over the past five years, dissipating again, any claim by the always deceptive President that things are great at a credit union teetering on the brink of failure. Here is a record of the credit union quarterly Net Income, for the periods ending on September 2010 though December 2011:
Net Income (Loss)
Ending September 2010: -$760,253
Ending December 2010: -$563,830
Ending March 2011: $488,270
Ending June 2011: $834,608
Ending September 2011: $990,766
Ending December 31, 2011: $1,126,513
On the surface, it appears dramatic improvement has taken place which would generally elicit our praises. On closer inspection and based on the disclosures of the President and some of his managers, business is actually in decline. Further review of the credit union’s Financial Performance Report (“FPR”) re-confirms that on January 1, 2007, the day Charles R. Wiggington, Sr. began his reign as President and CEO, Priority One’s Total Liabilities, Shares and Equity were reported at $172, 252, 649.
At the end of September 2011, their total amount of Liabilities, Shares and Equity had dropped to $158,350,672, a decline of approximately $14 million. However. as reported here previously, the credit union’s total Liabilities, Shares and Equity include the remaining unpaid balance of $10 million owed on the $20 million loan, borrowed by President Wiggington in mid-2008, in an effort to inflate the credit union’s value on paper.
On December 31, 2012, Priority One’s actual Liabilities, Shares and Equity approximate $148,350,672, constituting a decline of $24 million over a period of five years (January 2007 through January 2012).
In the years before and immediately following his appointment to President, Charles R. Wiggington, Sr. often boasted about his many BMW’s. Nowadays, the President no longer brags about his BMW’s just as he no longer speaks about the number of women he’s had sex with. Its not that he’s grown quieter or more discreet, he’s just desisted from talking about subjects which resulted in legal predicaments and embarrassment to the lagging credit union.
We located this humorous collection of photographs (http://www.bmwmregistry.com/detail.php?id=4573) taken of one of the President’s BMW’s and serving to remind us of Mr. Wiggington’s real priorities are not business but his hobbies, wasting time on unconstructive matters, and of course slandering staff. Is it any surprise that they are teetering at the brink of failure?
The Photographs and information pertaining to this vehicle are found at http://www.bmwmregistry.com/detail.php?id=4573 .
Mr.Wiggington’s past boasting about the value of his personal possessions including a BMW, he alleged had been appraised at $100,000 seem to be driven by a childish need to portray himself as something he is not. It is possible that constantly referring to what he allegedly owns deters attention from who he actually is. Certainly there is nothing in his conduct to suggest he has ever been a man of refinement. Time has also proven that his efforts at self-promotion have failed. If one were to believe he is a victim of jealous employees, then he is probably one of the most disliked Presidents in any company. However, if one ignores his chronic verbalizations and focuses instead on the facts, you can only conclude that he alone is the author of his own nefarious acts.
CONCLUSION
Evidently, evidence proves Mr. Wiggington has learned absolutely nothing about guarding confidentiality, maintaining a low profile or adhering to ethics. In November and December, he asserted Priority One had returned to a state of profitability not experienced since the honorable, William E. Harris, served as President and CEO.
In January 2012, he entered into a new campaign, denying allegations he ever violated state or federal law or that the credit union has ever been the subject of lawsuits filed by former employees.
At the beginning of February, President Wiggington implemented new and drastic changes intended to force the obtainment of new business within a highly constricted timeframe. The President also revealed that if the goals set for every department and branch are unmet, then he will be forced to further reduce the workforce and close the Burbank branch, adding that Priority One could be ordered to merge with another credit union. His statements which denote fear, hardly instill confidence and stand as a stark contradiction to his November and December proclamations that Priority One was riding the wave of success.
And contradictory to his assertions that Priority One has never been the subject of employee lawsuits, apparently they were, as proven by court records. What’s more, the credit union willingly entered into a real and tangible settlement with former Burbank Branch Manager, Linda Nisely. This of course causes us to pause, wondering what happened to the President’s 2011 statements asserting that Ms. Nisely’s lawsuit lacked merit and that the credit union was ready to prove she had been an inept, irresponsible and even, racist? We believe Mr. Wiggington or at least, the Board of Directors, should take some time to acquaint themselves with the definition of the words, “racist” and “discrimination”, as defined under state and federal law.
Mr. Wiggington may choose to view the world with rose colored glasses, hoping most members, employees, and representatives of other credit unions are somehow ignorant of his behaviors and gross failings but in case he remains self-deluded, allow us to enlighten him that his reputation and more specifically, his abuses, are well-known throughout the credit union industry. In fact, during a recent meeting conducted at the National Letter Carriers Association, Branch 24’s headquarters in Los Angeles, several postal carriers complained that Charles R. Wiggington, Sr. “ruined Priority One.” We adamantly concur.
To be continued……..
