Hyperbole

SAME OLD STORY

Last January, Priority One Credit Union's President, Charles R. Wiggington, Sr. declared that Priority One was again experiencing a resurgence in new business and in his words, "growing." This is not the first time the President has declared renewed prosperity where none exists. In February 2010, he and COO, Beatrice Walker reported profits earned during the month of January 2010 but by March it was revealed that the two transferred monies from one of the credit union's general ledgers and fraudulently reported these as profit from new business. 

In November and December of 2011, he visited the Burbank branch and told staff that Priority One was reeling in new business and cited high net capital as proof of his statement. By mid-January 2012, he issued directives to all managers and staffs ordering that they acquire new business over the next 30 to 60 days or he would have to lay-off employees and close the Burbank branch. In June 2012, he closed the Burbank branch and over the past five months, many full-time employees have been terminated. 

At the start of the year, the President began a campaign denying that he has ever been accused of sexual harassment or that any employee has ever sued the credit union. In response to his statements, we published documentation composed in 2008 by Senior Vice President, Rodger Smock, and Board Chair, Diedra Harris-Brooks, describing investigation proceedings and the Board's determination.  We also published documentation pertaining to the lawsuit filed by former Burbank Branch Manager, Linda Nisely. Last November, the credit union voluntarily entered into mediation to settle Mrs. Nisely's lawsuit quietly and amicably. Mrs. Nisely's lawsuit was scheduled to proceed to trial on February 12, 2012 in Department P at 300 E. Walnut Avenue in the city of Pasadena, California, but the credit union's arrogant attorneys, Richardson, Harmon Ober, expedited a settlement package to avoid what would assuredly have been an embarrassing and telling trial. 

President Wiggington is a man addicted to raising facades and doing all in his power to deter attention away from the illegal acts he's committed. He has proven he is no strategist though he is a story-teller. 

BRING IN THE CLOWNS 

On Saturday, July 7, 2012, the President again duped employees into believing they were attending a training session. Upon their arrival at South South Pasadena, they were informed the credit union was actually conducting another of its quarterly all-staff meetings. Why lie to employees? Because President Wiggington is addicted to lying. 

During the meeting, the President issued directives demanding employees work harder to bring in new business but conspicuously failing to provide instruction, tools, training, etc. that could help realize his demands. 

2012 has proven that neither CLO, Cindy Garvin, or AVP, Joseph Garcia, possess the magical abilities needed to correct the immense number of problems created by the President since starting his appointment on January 1, 2007. The only strategy we've seen implemented that is alleged intended to motivate employees into acquiring increased levels of new business is the use of fear. What the three alleged strategist seem oblivious to is that if you subject employees to fear, all you'll get is employees who are afraid, not employees who are motivated or who attain their assigned goals. None possesses the ability or talent to forge strategies that accomplish their intended purpose. As a result of the failures of the President, the CLO, and the AVP, many employees have succumbed to termination. 

On a side note, Ms. Garvin was hired in August 2011 in the capacity of Director of Lending and four-months later, promoted to CLO and appointed authority over all branches. So what in her performance during her first four-months of employment, justified a promotion and an increase of her annual salary of more than $20,000? 

Returning to the subject of the quarterly all-staff meeting, the President and Executive Vice President, Rodger Smock, spoke to staff. Employees who appeared bored were immediately approached by either Ms. Garvin or Director of Credit Resolutions, Yvonne Boutte, and ordered to listen to what was being said.

Ms. Garvin also spoke hypocritically about treating "people with respect." She stated that "continued abuse of members will not be tolerated" though ignoring the fact that some of the most notable abuses of members are committed on a daily basis by the staff of the credit union's Credit Resolutions Department. 

Ms. Garvin is also aware that employees of the United States Postal Service have lodged numerous and frequent complaints about being verbally abused by collection representatives including, Supervisor, Alex Suarez, and the department's Director, Yvonne Boutte. 

Employees were also informed that Yvonne Boutte, and AVPs, Gema Pleitez and Sylvia Perez, oversee the credit union’s “Robbery Program.”Amongst the information provided, employees were urged, that during a robbery they should:

• Carefully study a robber’s clothes.
• Assess the height and weight of the robber; and
• To give a robber whatever they demand.

REALLY?

We have no idea why Sylvia Perez was selected by the President to be part of a group that oversees the "Robbery Program". She is completely out of her element and wholly unqualified. 

In 2005, the erratic and hyper AVP who at the time served as Branch Manager of the Van Nuys office witnessed a man wearing a hooded sweatshirt and sunglasses, standing just outside the branch's doors. Members visiting that office cannot enter the premises without staff electronically opening the door. Despite the suspicious appearance of the man, Mrs. Perez chose to open the door. She would later tell employees, "I knew he looked suspicious and I thought he might be a robber." In spite of what she observed, she pressed the button located under her desk which allowed the man into the branch. 

Almost immediately upon entering the small branch, the man pulled out a gun and pointing at the Assistant Branch Manager, demanded that every teller give him their money or he would shoot the Assistant Branch Manager. And though Mrs. Perez sat in her glass enclosed office, she became paralyzed with fear and was unable to press the button that would have alerted the police that the branch was being robbed. 

The robber fled the branch, boarded a car but neither Mrs. Perez or any other employee of the branch wrote down the vehicle's license plate number. The robber was never apprehended making this a successfully robbery. 

Mrs. Perez was selected by Employee Services Director, Robert West, and Executive Vice President, Rodger Smock. So what was the criteria used by these two Rhodes Scholars that led them to conclude that Mrs. Perez was the best and right choice to serve as an overseer of the Robbery Program? 

Mrs. Perez was also once the self-appointed director of the WOW Committee, a body which was created to create a more cohesive and more effective working environment but which disbanded within a year after being created due to internal strife and dissatisfaction of it's participant's with Mrs. Perez's abusive and dictatorial methodologies. 

 PURPOSE

So why was the meeting conducted on a Saturday and why were deceptive ploys employed? 

According to President Wiggington, he didn't want news of the impending meeting finding it's way to the Internet. It's a rather inane excuse. Mrs. Boutte also later told staff that the meeting was a response to advice given to the President by the credit union's expensive consultants and overpaid attorneys. According to Mrs. Boutte, consultants informed the President that he must find a way to motivate employees to work harder which will not only serve to propel growth but will contribute to remedying the credit union's public image which at the moment, lies in tatters. The President was urged to focus on:

• Finding ways to attract member interest in the credit union's aging and ho hum products and services.

• Creating solutions that will dispel the credit union's vast member service-related issues and find ways of dispelling the member perception of the main branch which surveys show is viewed as "depressing", "unfriendly" and "miserable." 

The information provided by the credit union's sly attorneys warned the President that he must find ways of shoring up areas within the operation where highly confidential information is being leaked. And though the President has continually denied that he has ever violated confidentiality, the credit union's attorneys believe he is culpable for verbalizing much of the information which has been published on the Internet and verbalized to members. 

In 2011, the Board was informed that the credit union's Human Resources Department had not only failed to enforce policy including investigating allegations that members of the management sector had violated state law, but also refused to investigate grievances. The abuses were so widespread that just last year, the credit union was forced to implement a completely superficial and disingenuous restructuring of it's Human Resources which included changing the name of the department to Employee Services. Of course, we extend yet another invitation to the credit union to provide a synopsis of what the renamed department has done over the past year which attests to the changes it said would be introduced at the time the department was allegedly revamped. For the record, nothing actually changed. As we wrote, it was purely a change on paper. 

The President was also ordered to stop divulging confidential information but to date, he has refused to, periodically declaring, "No one tells me what to do." 

During the meeting, Ms. Garvin stated that satisfying assigned monthly goals will serve to determine whether or not an employee is granted a raise. Did the confused Ms. Garvin forget that there is a wage freeze in place which was implemented in early 2009? The credit union is not about to approve raises for any employees which Ms. Garvin doesn't realize, will impact an individual's motivation. 

Ms. Garvin is sufficiently out-of-touch that she felt impelled to state, "It's a way for you getting more money", referring to employees who attain their assigned goals. As we've reported in prior posts, the decision to assign monthly goals is a plot by which to justify the termination of employees which has become necessary since Priority One is just not able to generate the level of new business needed to offset it's above-average overhead. By terminating employees who fail to achieve their assigned monthly goals, the President is able to deflect attention from his failures which are the reason why business is suffering. 

Another piece of evidence that the entire plan is a scam perpetrated by the President and his assistants is that the credit union is not only requiring that employees achieve their assigned monthly goals, but that the departments they are assigned to, also achieve their assigned quotas. Subsequently, an employee who consistently achieves their assigned monthly goals will not receive an increase in salary if his department has failed to achieve it's total assigned quota. 

The credit union is not only forced to deal with waning business, it's annual expenditures on litigation has more than quadrupled since Charles R.  Wiggington, Sr. became President. Couple that with the immense amounts being spent on consultants and wasted spending on superfluous trappings and all that is left is a credit union whose overhead is too high for the amount of profit it is able to eek out from it's marketplace and a President whose spending is out-of-control   

AVP of Compliance, Patricia Loiacano, spoke to attendees about Cash Transaction Reports ("CTR"). Though we admit Mrs. Loiacano is highly knowledgeable about loans, she is an insipid public speaker and her character marred by the fact that when provided the opportunity, she is unmercifully condescending. All financial institutions in the United States are required to complete and submit CTR's for currency transactions in excess of $10,000. During the meeting, an employee asked how should staff respond to members who ask if a CTR is being filed. Mrs. Loiacano replied, "Whatever you do, don't tell them." Dissatisfied with Mrs. Loiacano's non-answer, another employee reiterated the question. This time, Mrs. Loiacano replied, "Don't say yes, don't say no." Employees were left bewildered. Evidently, Rodger Smock isn't the only officer who provides inane answers to intelligent questions. 

CHAPTER MEETINGS

The President recently began re-attending the Los Angeles Chapter meetings which take place once each month at Luminarias Restaurant in Monterey Park, California. For years, the credit union allowed employees to attend the meetings but in 2009 employees were informed the credit union could no longer afford to pay for the $30 per person charged levied by the Chapter. 

The reason for the President's recent return is has absolutely nothing to do with a resurgence in business but rather, a request by consultants that the President stop hiding and show people he is not affected by the public exposure of his illegal activities. 

He was accompanied by Executive Vice President, Rodger Smock, though we find it peculiar that the aged EVP agreed to attend. In 2009, Mr. Smock stated that the only reason why people attend monthly chapter meetings mis because of the "free food." Of course, Mr. Smock had absolutely nothing in the form of evidence to support his jejune statement but substantiating anything he feels impelled to say is often not impelled by reasoning. 

It's also noteworthy to point out that during his 19 years of employment, the President has rarely left the branch to visit Select Employer Groups or postal facilities with exception of attending bi-monthly meetings conducted at the postal carrier's union hall where some attendees have pointed out laughingly that the President likes to talk and spend a lot of time before meetings, in the bar located inside the hall. 

During his visit to the National Association of Letter Carriers' union hall, the President reiterated his lie that Priority One is reeling in success as attested to by high net capital. Sure it is. 

"We have tremendous net capital!"

Charles Wiggington, President/CEO

July 2012

NO THANK YOU

Ms. Garvin’s first big campaign is currently advertised on the credit union's webpage and invites members and potential members to ”drive away from your existing high‐interest auto loan AND lower your payments!” The promotion includes:

• A 2% reduction of an applicant's loan rate currently financed at another credit union
• No payments for up to the first 60 days in which the loan becomes effectives; and 
• Award of a "Getaway [vacation] Certificate

The APR's offered by the credit union are described as a "Great Rate" with an added discount added for Direct Deposit into a Priority One checking account. Payments will not have to be made to the loan for up to 60 days and people who fund their loan with Priority One will receive a "Getaway [vacation] Certificate." 

Many members and potential members contacted the credit union to obtain information about how much their current APR might be reduced but discovered that any reduction is contingent upon the term of a loan. For example, the amount of an APR for loans with terms of 72 and 84 months is less than those for loans with terms of 48 and 60 months. What the pubic is of course not aware of is that Loan Processors and Officers have been instructed to approve and fund loans for a maximum of 48 months though the promotion offers on paper, The fact is, funding loans for terms of more than 48 months is something Priority One cannot afford to do. As the President revealed three-months ago, it is important to Priority One to fund loans that are paid-off quickly because these offer fast profit and which he admits is a reason why he eliminated the wide-variety of real estate loans once offered by the credit union. What's more, the hedge ("disclaimer") language reads, "This is not a loan offer." They're right. 

Unfortunately for the credit union, the response to Ms. Garvin's campaign has been lukewarm. Hopefully, this is not indicative of what we can expect of Ms. Garvin in her future endeavors. Otherwise, we're beginning to sense a repeat of Beatrice Walker. 

UNDESERVING

In 2009, President Wiggington was received a salary, approved by the Board of Directors, in the amount of $175,708. This was the same year the credit union ended with more than $500,000 in losses. Clearly, the salary was undeserved. 

President Wiggington remain employed because of ignorance and based on the October 2006 statements made by Directors, O. Glen Saffold, Thomas Gathers and Janice Irving, they selected Charles Wiggington because what Priority One needed most "is a Black president." It was also Board Chair, Diedra Harris-Brooks, who has not only retained his continued employment, it is she who orchestrated his reinstatement in 2008 after evidence was provided to the Board of Directors providing the President sexually harassed a former employee. It is also Mrs. Harris-Brooks who has approved the annual raises and bonuses given the President at the end of each year despite the losses of millions of dollars net assets, closures of branches, the adoption of expense reductions as key to the credit union's continued survival, and lawsuits provoked by the President and his executive staff as a result of their violation of state and federal laws. Undeniably, Charles R. Wiggington, Sr. is undeserving of his position and salary. 

The proof of the President's vast failures and may we add, unprecedented failures, are found in the credit union's Monthly Income Statements and Quarterly Financial Performance Reports ("FPR") which show that net assets have declined by about $24 million. 

The President's ploy to increase new business through the assignment of monthly quotas to each and every employee was doomed for failure because the same President who has proven incapable of creating effective strategies that reap new business and who spent more than $200,000 on the hiring of terminated former COO, Beatrice Walker, and who purchased a technically flawed $600,000 telephone system is the same President who is in charge of finding solutions for the blunders he alone created. 

The President recent efforts to try and rekindle relations with employees of the United States Postal Service by attending the National Association of Letter Carrier Branch 24 bi-monthly meetings and his attendance at the L.A. Chapter meeting are at best superficial and disingenuous attempts to try and remedy the credit union's heavily damaged public reputation.