Through the Looking Glass, Part 3

And Then There Were None

Yesterday, May 30, 2012, Priority One Credit Union's Burbank branch permanently closed its doors making this the fourth branch to close since mid-2010 in what is President Charles R. Wiggington, Sr.'s desperate attempt to reduce spending and raise net capital. 

Since his appointment on January 1, 2007, President Wiggington has proven to be the worst President and CEO to ever lead the no longer prosperous credit union. On the day he became President, the credit union had the following branches:

• South Pasadena
• Burbank: Closed
• Los Angeles
• Redlands: Closed 
• Riverside: Closed 
• Van Nuys
• Valencia: Closed 
• Worldway: Closed

Since January 1, 2007 and as shown above, Charles R. Wiggington, Sr. has closed more than 50% of the credit union's once successful branches. The President insists the closures are out of his control but one can't ignore that prior to his appointment, the credit union grew and prospered something that ceased to happen after Charles R. Wiggington, Sr. was named President. In spite of his well documented failures, during the May 27, 2012, annual meeting, the President declared the business is "great." During his approximate 45-minute speech, the President spoke to the point of ad nauseum about the credit union's many alleged achievements occurring in 2011. Is he daft?

What he never mentioned is that Priority One is addictively dependent upon expense reductions as key to its survival. What's more, the credit union no longer can afford to maintain a presence in all of Riverside county. 

  

CONSULTANTS

Since 2009, the credit union has been spending tens of thousands of dollars on consultants who try but fail to rework the credit union's tarnished public image. 

This year, the latest group of consultants arrived at the South Pasadena branch and began an intensive inspection of the credit union's operations and website and mailed form letters to members including employees and former employees, trying to gauge responses as to how the credit union can improve services and products. 

Monies spent, actually wasted in 2009, 2010 and 2011 and consultants provided the credit union with extensive data about member reactions to the credit union's offers, suggestions where improvements could be introduced and suggestions where internal changes could enhance staff development but the President rejected all findings and suggestions because they were unpalatable with is personal view of the credit union. Don't expect this latest costly venture to produce anything worthwhile which helps the credit union escape the problems caused by years of mismanagement.

THE NEW MARKETING SPECIALIST

This past April, the credit union hired a new Marketing Specialist. The former Marketing Specialist who had a degree in marketing, was laid-off in 2010 after Senior Vice President, Rodger Smock, became the jealous of the much young man and began a campaign slandering the specialist's abilities. He also all too easily convinced COO, Beatrice Walker, that the specialist was leaking confidential information on to the Internet even though the specialist had no access to confidential information. 

The new specialist was introduced to the credit union by CLO, Cindy Garvin. On his first day of work, the new Marketing Specialist, Daniel Ballesteros, was was hurriedly escorted to the office of Employee Services Manager, Esmeralda Sandoval. He was not introduced to other staff members. He was initially asked to work from home because the President doesn't want information about the specialist finding its way to the Internet. 

Last month, the President disclosed that the Marketing Specialist will be provided "a small budget" which will be used to conduct all necessary studies and pay for advertising. The President is again showing his ignorance that marketing requires spending money if it's going to obtain information used to promote the credit union's name, products and services.

We hope the Marketing Specialist can work within a constricted and frugal budget and more importantly, working alongside a President who has little concept of the role of marketing in the development of business. 

LEGAL PROBLEMS

During the month of May, Priority One continued contending with its many legal problems. A complaint suggests the credit union is preparing to be sued again. If sued, this will be the third lawsuit filed against the credit union since October 2010. The President and Yvonne Boutte, the Director of Credit Resolutions, disclosed the second lawsuit filed by a former Business Development representative had finally been settled. Last April the President declared the lawsuit had been dismissed by the court due to a lack of evidence and that the Plaintiff's attorney had suddenly resigned after realizing his client's lawsuit was frivolous.The President's version of what allegedly transpired is questionable. If the Plaintiff's attorney agreed to represent his client, its because the complaint possessed merit. Why would any attorney agree to represent a person and then months later realize that the client's case lacked merit. 

This past April, President Wiggington informed the Member Service Department's Manager, a chief consumer loan officer and the AVP of Sales and Business Development that the credit union had been victorious in defeating the first and second lawsuits filed by former employees Despite the President's statements alleging the second lawsuit had been dismissed, just two weeks ago, the credit union voluntarily offered a monetary amount to settle the case. Obviously, the President lied when he stated the case had been dismissed. Later, in this post, we will provide additional insight into some of the President's latest antics recently carried out by his not-so-elite executives. Their behaviors remind us that at Priority One, personal decorum and intelligence are not considerations when the President chooses to hire and promote executives and managers. 

AVOIDING the FACTS

During this year's annual meeting, which took place in South Pasadena on May 23th, was planned to present a promising picture of the plans for the credit union's future but what was conspicuously apparent is that both the President and Mrs. Harris-Brooks were careful to avoid all mention of branch closures, decaying employee morale or the credit union's horrendous public reputation. They also didn't acknowledge increasing account closures, amassing member complaints poor member service, or the fact the credit union has been sued by three former employees. Its what the President and Board Chair avoided saying that is most telling. 

Board Chair, Diedra Harris-Brooks, exerted tremendous effort to convince/dupe/fool/scam attendees into believing that 2011 was a stellar year for the credit union during which the organization grew and prospered. The President and Board Chair apparently believe no one remembers that four (4) branches have been closed since 2010 or that net income has dropped by approximately $20 million since Charles R. Wiggington, Sr. was named President on January 1, 2007. 

This year's meeting was evidently intended to deceive attendees by presenting an inaccurate portrayal of the credit union's performance in 2011 and a fictitious and enhanced depiction of what lies ahead for the credit union in 2012. One indicator that their stories are no longer believed is the fact that all attendees were either employees of officers of the credit union. Conspicuously absent were ambassadors and members of the United States Postal Service and Select Employer Groups. 

During the entire meeting, no mention was made to the lawsuits litigated in 2011 or settlements voluntarily entered into by the credit union.  Also, nothing was said about mounting member complaints citing deficient member service levels. The intent of the President and Board Chair was to present a view of the credit union through rose-colored glasses. 

The Annual Report

The cover of this year’s Annual Report is upbeat, positive and is titled, “Building a Stronger financial future”. Unlike reports published prior the January 1, 2007, the report is a frugal in appearance and found using low quality paper and faded type and graphics. It clearly reflects the President's efforts to reduce spending.  

The report contains addresses "signed by" officers of the credit union describing in part, their accomplishments throughout 2011 and what they hope to achieve in 2012. It's of course all hyperbole. 

All propaganda aside, since April 2012, account closures continue to increase, many employees are failing to achieve their monthly sales quotas and the credit union is no longer competitive and heavily reliant upon expense reductions as key to it's survival. 

Growth?

During his address, President Wiggington credited improvements that allegedly took place in 2011, to overcoming impediments caused by the national economy but avoided alluding to his business blunders and his wasting of hundreds of thousands of dollars of credit union monies and of course, closure of the Riverside branch.   

THE ADDRESS FROM THE PRESIDENT AND BOARD CHAIRPERSON

REPORT OF THE SUPERVISORY COMMITTEE

This year's report was as aimless and empty as those of previous years, with Supervisory Committee Chair, Cornelia Simmons, once again presenting another of her insipid messages declaring that Priority One's performance is declared to be sound. We're  starting to believe that she uses a single template when creating her annual reports. 

We’d like Ms. Simmons to provide examples of how the Committee encourages “strengthening of internal controls” and what goes into the committee's alleged "review process." Her message is so general it virtually offers nothing to support what are her unfounded declarations.  

REPORT OF THE TREASURER

Joseph Marchica has served as Treasurer of the Board for many years though we think it's time the elderly Director resigned. He doesn't attend most monthly meetings because he lives too far from South Pasadena. Did he forget he is supposed to be serving members? He, like the other Directors, panders to the Chairpersons every whim making him useless to ensuring the upward mobility of the credit union. 

His report reveals just how-out-of-touch he is. He describes the Board's efforts in 2011 as a "long and eventful journey." Eventful in what way? Is he trying to turn a positive out of a series of negatives which includes the closures of four branches and the loss of more than $20 million in net assets? Mr. Marchica failed to consider the following facts: 

• Priority One’s asset value has decreased by approximately $20 million since January 1, 2007.
• Member complaints have increased, citing poor member service.
• The Call Center is a failure.
• The Credit Union's relationship with employees of the United States Postal Service and of employees of Providence St. Joseph has deteriorated and in the case of St. Joseph, is probably not salvageable. 
• The credit union has been sued by three former employees.

We've also recently confirmed that several former employees of the Burbank branch have and are recommending members in Burbank open accounts at Logix Credit Union and Universal Studios Credit Union.

Mr. Marchica also ignores the fact that under Charles R. Wiggington, Sr. and Board Chair, Diedra Harris-Brooks, Priority One is a much smaller, poorer and no longer competitive credit union. Certainly, there is nothing in it's performance to suggest a more promising future. 

As we've stated previously, under President Wiggington, creating false impressions has become necessary and pivotal to trying to cover-up the effects of his rampant blunders and personal indiscretions. Don't expect the credit union's current slippage to change at anytime soon. The reason is that the President who created the problems and the Board who allowed his widespread problems to persist are the same people who are in charge of forging a solution. It's just not possible and to believe they can fix what they created defies all logic.