The Liar's Club

PHONY AS A $10 BILL

There's probably few people that would deny that Priority One Credit Union's President, Charles R. Wiggington, Sr., is a man embedded in the superfluous. Over the years, he has spent an inordinate amount of time and credit union funds on hiring consultants who are paid to create facades that hide the effects of his abysmal performance. 

We were reminded of this in early August when a reader of this blog accused us of publishing inaccurate information about the date when President Wiggington was first appointed President and CEO of the then successful and growing credit union. The reader pointed out that many of the President's online biographies, CV's and resumes state that he began his appointment on March 1992 and not January 1, 2007., The latter, is the date we have alluded during the past 6 years. 

A search on the Internet revealed that Charles R. Wiggington, Sr. does in fact state he began ins appointment in March 1992 which is clearly inconsistent with the date we've often provided. So did we err? If we did, that's a discrepancy of 15 years. Or has Charles R. Wiggington, Sr. provided inaccurate information about himself?  Its unlikely that President Wiggington would forget the day he became President and certainly, how could he fail to differentiate between 1992 and 2007? 

VISUALCV.COM

As shown below, on VISUALCV.com, Charles R. Wiggington, Sr. does indeed state taht he began his appointment in March of 1992.  The date provided by President Wiggington
is incorrect. Actually, the incorrect date constitutes fraud. 

Source: https://www.visualcv.com/charlesrwiggingtonsr

its easy enough to prove that Charles. R. Wiggington, Sr. was not appointed President in 1992. In October 2006, Priority One’s no longer existent Marketing Department sent out the following invitation to employees, vendors, Directors, Supervisors, and associates in the credit union industry. 

As shown above, the invitation was to attend the retirement dinner for then President and CEO, William E. Harris. The  party was held at the Queen Mary in Long Beach, California on the evening of Saturday, November 11, 2006. Yes, the event was conducted in 2006, proving Charles R. Wiggington, Sr. could not have been President on any date prior to January 1, 2007. 

Amongst the many guests who attended the retirement party on November 11, 2006, were then Vice President of Human Resources, Rodger Smock; and Board Chairperson, Diedra Harris-Brooks. The three not only attended the party but each spoke briefly, providing tributes to then President William E. Harris.  Furthermore, prior to January 1, 2007, Charles R. Wiggington, Sr. was the Vice President of Operations.

Despite having been present and spoken at the November 2006 retirement party, in 2012, Charles R. Wiggington, Sr. embellished his employment history and chose to reference March 1992 as the date he was first appointed President. The image of the above-shown invitation dispels that Charles R. Wiggington, Sr. was President of the credit union in 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, or 2006.  

One might also have thought that Executive Vice President, Rodger Smock, and/or Board Chair, Diedra Harris-Brooks, would have taken a moment to remind the dishonest President 

that lying negatively impacts the integrity of member trust in the organization and asked that he remove the fraudulent reference from his biography, but evidently neither was ethically motivated to do so. 

So why would Charles R. Wiggington, Sr. wish to publish an inaccurate record of his employment while at Priority One Credit Union and if he could provide a fraudulent account of his time at Priority One, can we trust any of the information provided about his employment prior to his arrival at the credit union? The only plausible though not rational reason for exaggerating his employment history is to embellish it. But why? Isn't he satisfied with the real record of his employment? 

Historically, President Wiggington has wasted years and tens of thousands of dollars trying to create campaigns that present a fraudulent portrayal of the credit union's real performance. When called to testify in court, can we expect Charles R. Wiggington, Sr. to tell the truth or will he again gush out concoctions intended to escape accountability for failing to enforce security protocols which have resulted in internal thefts committed by now former employees? 

However, if one to gives Charles R. Wiggington, Sr. the benefit of the doubt, then the reference to March 1992, currently found in his biographies, CV's and resumes, might merely be the result of chronic forgetfulness? If so, then this points to a larger, more serious issue. If he suffers from an inability to remember things, could this be the reason why in 2009, a former receptionist of the Los Angeles branch succeeded in embezzling $60,000? 

Could a possible state of forgetfulness also be the reason why in 2010, a married couple withdrew $100,000 from a HELOC checking account that should have been closed months earlier? 

And lastly, could a case of chronic forgetfulness be the reason why during the years of 2010 through 2012, an AVP found an opportunity to allegedly embezzle more than $1 million in cash from the Los Angeles branch's vault? 

The President and Executive Vice President's biographies, CV's and resumes which are strewn about the Internet were the brainchild of consultants hired in mid-2012. At the time, Board Chair, Diedra Harris-Brooks, became frantic about repairing the credit union's horrendous public reputation. The consultants performed a generic analysis of the credit union which included mailing questionnaires to past and present employees and members which asked for suggestions on how to improve business. Predictably, there were few responses to the queries.

The assessment of Priority One's internal and external performance led the consultants to conclude that Priority One needed a new, revamped, more colorful webpage. At the time, the President boasted that the new, more user friendly interface would simplify locating information about what the credit union offers and expedite applying for loans. As time would prove, the new webpage had no effect upon improving sales.

The consultants also informed the President and Board Chair that it would benefit the credit union if the President's and Executive Vice President's work histories were published on the Internet. These would serve to show the competency of the credit union's leadership which would in turn elicit confidence in members and potential members. And so, the over-saturation of the work histories was begun and the President, the Executive Vice President, and the Board of Directors awaited for business to improve.

Its important to note that the biographies, CV's and resumes were all reviewed by Executive Vice President, Rodger Smock. Since January 1, 2007, it is Mr. Smock who reviews the President's addresses to members which were once published monthly in the no longer existent newsletters. It is also Mr. Smock who composed and/or reviewed the addresses for nominees and incumbents who vied for one of the seats on the Board of Directors or Supervisory Committee during Priority One's annual election. 

Like the President's exaggerated biography, the Executive Vice President's record of his employment and education contained references that no one at the credit union had heard of prior to 2012. In his biographies, Rodger D. Smock stated he studied business and marketing while attending the University of Cincinnati during the mid-1960's. 

This came as an utter surprise to many employees and to several former officers of the credit union, none of who had ever known he studied either business or marketing. In fact, in the years prior to 2007, he periodically disclosed he studied psychology while at the university. What's more, during depositions conducted in 2013, he affirmed he studied psychology. 

His alleged studies in business and marketing are not attested to by anything he did while overseeing Priority One's marketing committee during the years of 2008 through 2009. During that period he assisted in composing articles for the newsletter and with the help of the credit union's contracted publishing company (versus marketing consultants), he assisted in writing copy and selecting graphics for planned promotions.

His so-called education in marketing seemed limited to advertising which is not synonymous with marketing. Additionally, if he studied marketing in the mid-1960's, then by 2008, when he temporarily took over marketing, Rodger Smock would have been more than a little out-of-touch with current marketing methodologies. He also never achieved success or industry recognition achieved by the Marketing Director who for years, oversaw marketing until January 1, 2007, the date when Charles R. Wiggington, Sr. bludgeoned the marketing department out of existence.

Evidently, the revamped webpage and the President's and Executive Vice President's mass published biographies, CV's and resumes, had absolutely no positive impact upon business and in the end, their efforts amount to just more abuses of credit union resources, all sanctioned by the Board of Directors and its always ignorant Chair, Diedra Harris-Brooks.  

This month, we've decided to focus on recent events occurring at Priority One Credit Union, all of which affirm that this is an organization juggling an immense number of problems that are not consigned to litigation. We will resume our reporting on the credit union's numerous lawsuits in next month's post. 

The incidents we are reporting about, all contrast sharply to the concoctions continually gushed forth by President Wiggington which always insist that business is wonderful and growing and that his plans for the credit union are proceeding as planned. As we've often written, if his plans are proceeding according to a plan he forged, then failure must be his ultimate goal. 

INDICATOR OF FAILURE

This past August, long-time employee and Consumer Loan Officer, Georgina Duenas resigned after more than 15 years of employment. Her resignation allowed the credit union to further reduce spending on her salary and medical and retirement benefits, all which contribute to the credit union's efforts to maintain net capital well above the dreaded 6%. 

What makes Ms. Duenas' departure noteworthy are statements she made about the credit union just after submitting her notice of resignation. 

Prior to leaving, she took two weeks of vacation time to go and work with her future employer, just to determine if the work was compatible and apparently, it was. 


Following submission of her notice of resignation, she confided to co-workers that she had grown weary of the credit union which she said offered no career development. She also complained that she had grown tired of working for low wages and working under a five-year freeze, implemented by President Wiggington in mid-2010. At the time, he said the freeze was temporary and would be lifted as soon as business picked up. His alleged short-term fix which is on its 5th year serves as yet more evidence that the credit union's financial standing is faring poorly and that rumors of declining business are evidently true. As of September 2015, their is nothing to indicate the freeze will be lifted at any time in the foreseeable future. 

As a long-time member of both the Consumer and Real Estate Departments, Mrs. Duenas expressed tremendous dissatisfaction with the credit union's current mandates, which requires all employees of the Consumer Loan Department to aggressively try and acquire new business. The problem with the mandate is that members whose loan applications have been approved, refuse to follow through and obtain funding. As we've reported in previous posts, under President Wiggington, sales trump service. The crux of Priority One's inability to acquire new business is directly tied to its public reputation and poor quality member service. Many members whose loans have been approved, eventually go to other credit unions to obtain funding they seek. As the old adage says, "You can lead a horse to water but you can't make him drink it."

The President's remedies, all enacted in 2010, are now contributing to growing employee dissatisfaction with their employer and undermining the ability to reverse the multitude of problems introduced by Charles R. Wiggington, Sr.., in the years following his appointment to President. The "temporary" wage freeze, his gauge treatment of members, his inability to create marketing strategies, and insipid product offerings are all contributing to the credit union's ongoing decline. Furthermore, to retain net capital above 6%, President Wiggington has caused the credit union to become addictively reliant upon expense reductions as key to its continued survival. . . 

LOAN DEVELOPMENT

President Wiggington may have proven to be quite incapable of developing strategies that produce real profit, but what he lacks in imagination and competency is over-compensated with by his adamant need to camouflage the credit union's lagging performance. 

In early 2008, the President and Board became concerned by the radical decline in business. Initially,. the blame was placed on the AVP of Lending who was only reporting to work 2 or 3 hours per day and when at work, performing duties for his second source of employment at Century 21 Realty in Alhambra, California. 

The President and Board Chair, Diedra Harris-Brooks, decided the credit union would borrow $20 million from it's line-of-credit. The loan would be used to increase the amount of the credit union's net income on paper. The impetus for borrowing the money was again, purely superficial and immensely dishonest.  Over the next two years, the credit union would pay out $30,000 to $33,000 per month, in interest. hardly the type of prudent planning that should be entered into by a credit union that is in dire need of new business and from an organization that touts itself as a financial fitness center. On December 31, 2009, and despite having borrowed $20 million, Priority One ended the year with more than $5 million in losses. This had never occurred under any other of Charles R. Wiggington, Sr.'s predecessors. 

In February 2010, the credit union issued its Income Statement/Balance Sheet which reported profits in excess of $200,000 for the month of January 2010. So how could a credit union that ended 2009 deeply immersed in the RED, generate more than $200,000 in profit during the month of January 2010, which is traditionally the second slowest month of the year? As it turned out, the credit union never generated profit during the month of January. The President and then COO, Beatrice Walker, transferred monies from one of the credit union's general ledgers and applied them to the month of January 2010, all to create the appearance of profit. Later that year, on December 31, 2010, the credit union reported losses in excess of $500,000. 

Earlier this year, the President changed one of the Loan Department's procedures. Under credit union policy, approved loans remain active and eligible for funding for a total of 30-days. After 30-days, they are no longer active and cannot be funded. If a member wishes to fund that loan, a new credit report will be ordered to determine if the member's credit history has undergone any changes. The procedure is designed to protect the credit union and it also protects a member who might not be able to afford obtaining a loan. 

The new procedures allows an approved loan to remain actively in the credit union's database even after the 30-day period has expired. The only reason the President would implement this change is to create the impression that Priority One is doing brisk business and has lots of approved loans on file. As Charles R. Wiggington, Sr. has proven time and time again, he is not a man daunted by reasonableness of policies or laws.  

Of course, this current violation of loan policy is but one in a long list of abuses perpetrated by the adversarial President. For years, he boasted that Priority One's membership approximated 30,000 members but as we reported in our last post, earlier this year, Employee Services Director, Robert West, authored an article for HigherUp in which he stated that the credit union's membership approximates 26,000 members.  Like the reference in his employment history, President Wiggington is again exaggerating the truth. We have to point out that at the time he was appointed President, membership approximated 32,000 which means that over the past 8 years, Priority One has lost approximately 8,000 members. Inarguably, this is another indicator to failure. 

ANOTHER WIGGINGTON  KNOCK-OFF

As we reported a few weeks ago, Priority One's sole Business Development Representative, Joseph Garcia, resigned and left the credit union for new employment. Before leaving, Mr. Garcia composed a farewell message of sorts, bidding employees adieu, however, recent disclosures originating from the South Pasadena office reveal that Mr. Garcia's departure may not have been either amicable or voluntary.  

Mr. Garcia's stay while at Priority One was both peculiar and initially, propelled by favoritism. In 2010, he was transferred to the South Pasadena branch using the pretext that he was to serve as interim Call Center Supervisor until a permanent supervisor was hired. Less than three weeks later, Executive Vice President, Rodger Smock, posted a message on the Intranet announcing that Mr. Garcia had been selected to be the new permanent Call Center Supervisor. Over the next three months, his patron, COO, Beatrice Walker, would promote him to the post of Credit Manager, and Real Estate and Consumer Loan Department Manager. He held all the titles to his different positions for just a few months before these were gradually but consistently transferred to other people. 

Due to his inability to learn procedures, by June 2010, he was stripped of his titles of Credit Manager and Real Estate Loan Department manager. By November 2010, his former alliance with COO, Beatrice Walker, had deteriorated and the two stopped speaking to one another. 

In January 2011, he was stripped of his title of Consumer Loan Department Manager and instead, assigned to oversee the Member Services Department. He held the position for a few weeks before being returned to the Consumer Loan Department but a few weeks later, with the help of a Branch Manager, he left the credit union on a medical leave of absence, alleging work-related stress. 

In July 2011, COO, Beatrice Walker was fired and Mr. Garcia returned to work just a few weeks later. However, upon his return, he was told he was being demoted to the post of Assistant Loan Manager and would have to report to the newly hired Chief Lending Officer, Cindy Garvin. 

However, Mr. Garcia entered into an aggressive self-promotion campaign, wooing President Wiggington and easily convincing him that if he was given authority over business development he could not only force employees to bring in large amounts of new business but he would target and remove anyone he viewed an enemy to President Wiggington's authority. The President ignored Mr. Garcia's well-documented record of failures and promoted Mr. Garcia to AVP of Sales and Business Development. 

Mr. Garcia and Ms. Garvin assigned every employee monthly sales quotas that they must meet or be suspended or terminated. In 2012, the two entered into an aggressive campaign to cajole employees to meet their quotas but their campaign spawned widespread cheating amongst many employees who falsified their sales quotas. Employees who didn't cheat but who couldn't meet their quotas, were issued written warnings. Employees who were unable to achieve their assigned quotas for a consecutive two month period were promptly terminated. The strong-arm tactics implemented by Mr. Garcia failed to increase sales and increased employee dissension. In late October 2011, Mr. Garcia fled the credit union on a second medical leave of absence.   

Mr. Garcia returned to work on January 15, 2013, and was promptly informed that he was being demoted and would from hereon serve as the credit union's sole business development representative. Unfortunately, as in all his prior positions, he was never able to attain his assigned $150,000 monthly quota but despite his history of failures, Charles R. Wiggington, Sr. chose to retain him on payroll with full benefits. 

Unfortunately, during his time as Business Development Representative he could never attain his monthly sales quote of $150,000. Despite his history of failures, Charles R. Wiggington, Sr. chose to retain Mr. Garcia on payroll. 

And so Mr. Garcia remained on payroll though never able to fulfill his responsibilities in a satisfactory manner. Approximately, two months ago, the President contacted one of the credit union's SEG's and asked if they were pleased with Mr. Garcia's services. The President was informed that Mr. Garcia had never visited the company. A review of Mr. Garcia's monthly reports revealed that he had reported visiting the company. The President ordered Mr. Garcia's termination. 

As we've reported for years, members had complained for years, alleging Mr. Garcia never returned their calls, never advised them of the determination regarding their requests for loans and would not keep appointments. Despite the numerous complaints, Charles R. Wiggington, Sr. and Executive Vice President, Rodger Smock, found it prudent to retain Mr. Garcia. The fact that they chose to retain Mr. Garcia on payroll is a contradiction of the President's chronic insistence that spending must be streamlined. 

We have one question. How could Mr. Garcia be terminated for violating credit union policy when he falsified his monthly reports and President Wiggington retain his employment after a long and well-documented history of violating policies and breaking state and federal laws?.  

THE RETURN OF BUSINESS DEVELOPMENT, 

BUT IS IT TOO LATE?

The departure of Joseph Garcia has left the credit union without any business development representatives to visit the communities served by the credit union. Of course, in view of the fact that Mr. Garcia was rarely or not visiting all together, the communities served by the credit union, his departure is inconsequential to business. And though Priority One's territories extend south into all of Riverside County and north into the Santa Clarita Valley, the fact is, Priority One has been financially unable to send representatives into those territories or to maintain a presence in most of the regions it serves.  

In 2010, COO, Beatrice Walker often boasted to Branch Managers that she possessed the ability to bring in more business than the entire business development team combined. At the time, the team consisted of 5 full-time employees. 

Ms. Walker easily convinced the pliable Board Chair, Diedra Harris-Brooks, that the business development team was overpaid and ineffective. She also convinced Mrs. Harris-Brooks that if allowed to implement changes without interference of either President Wiggington or Executive Vice President, Rodger Smock, she could easily resolve the credit union's business development and service issues. Upon receiving permission from Mrs. Harris-Brooks, Ms. Walker quickly implemented the following changes, promising these would induce growth, create profit and enhance member service:

• Installation of a new call center in the South Pasadena branch
• Dismantling the Business Development team
• Introduction of a payday-styled loan
• Introducing courtesy pay (costly overdraft protection)
• Remodeling of the entire South Pasadena branch
• Remodeling of the Burbank branch; and
• Promotion of Joseph Garcia to the positions of Call Center Supervisor, Credit Manager, Consumer Loan and Real Estate Loan Manager

With exception of Courtesy Pay, Ms. Walker's newly introduced streams of income proved quite unprofitable. With regards to Courtesy Pay, the credit union obtained profits from charging exorbitant fees the use of overdraft protection. Courtesy Pay is not new or unique and was not the brainchild of Ms. Walker but it was the one factor which impelled Priority One's metamorphosis from credit union to that of a traditional bank. 

Ms. Walker's failures, personal behaviors and her insubordination to the President, Executive Vice President and the Board of Directors were sufficient to warrant her termination in July 2011. Contrary to her boasting, Ms. Walker provide as incapable as President Wiggington and Executive Vice President, Rodger Smock, in formulating a single strategy that would propel business forward. In fact the only person she apparently had the ability to sell anything to was Board Chair, Diedra Harris-Brooks, who without reservation, bought into everything promised by Ms. Walker. 

In late 2012, President Wiggington officially dismantled the Business Development team just as he had dismantled the once successful and industry recognized, Marketing Department 
Not only did he bring an end of the team's visits to the communities served by the credit union but at the time, Executive Vice President, Rodger Smock, disclosed that the credit union could no longer afford to send representatives to chamber luncheons or to participate in community sponsored events.

Recently, President Wiggington revealed that it has become imperative the credit union regain a foothold in the communities it is supposed to serve. His reasons are not so much driven by a need to create ties with the communities but rather to try and acquire new business. As part of his newest enterprise, the President has ordered reinstatement of a former senior business development representative who in 2012, was ordered to work in the Call Center. The employee who has been employed by Priority One for more than 40-years, had over many decades, built strong, lasting relationships with employees of the United States Postal Service and SEG's but for some inexplicable reason, Charles R. Wiggington, Sr. chose to take the successful representative who had an actual documented record of success and replace him with Joseph Garcia who had an actual well-documented record of chronic failures. 

One could spend hours trying to discern the reasoning behind the President's many empty and ineffective decisions but does his attempts to resurrect business development come a little too late? 

In 2007, the President ordered reduced efforts by the business development team to try and acquire new business from employees of the United States Postal Service. At the time, he ordered greater focus placed on SEG development, a segment of the credit union's business which had never brought in much business. 

Similarly, in 2007, he ordered cessation of all season loans developed by his predecessor, William E. Harris. Though the loans had proven one of the credit union's most successful products, the President declared that he did not wish to offer anything created by his predecessor. In 2014, President Wiggington ordered reinstatement of season loans. 

In 2010, Executive Vice President, Rodger Smock, scoffed at the overall importance employees of the postal sector upon Priority One's business yet in 2015, the credit union is resurrecting efforts to regain its former relationship with members who are also employees of the United States Postal Service.

The success of the credit union's current efforts is contingent on so many factors not the least of which is that Charles R. Wiggington, Sr. is a president who has no understanding of the importance of member relations and whose administration is characterized by deception, illegal acts, and scandals.  

ANOTHER UNEXPLAINED CLOSURE

In February 2012, the Los Angeles branch closed for three days. At the time, President Wiggington issued a notice to employees on the credit union's Intranet and posted notices on the branch's doors, disclosing that the office was closed due to a power outage. As time would prove, the "excuse" was a lie an another of Charles R. Wiggington, Sr. greatest fumbles. There was no power outage. Though the office was closed, members and employees of the Los Angeles Postal Distribution Center, the facility housing the branch, reported seeing lights on in the office and employees working at their computers. 

In March 2012, employees of the Los Angeles branch began reporting that the branch was closed during which Internal Auditor, Diane Huffman, audited that office's records. Ms. Huffman's finding that money had been stolen from the vault of the Los Angeles branch,  resulted in the termination of AVP, Lynnette Pearl Fortson, who was accused of stealing money. Ms. Fortson's termination was divulged by employees of the Credit Resolutions Department, some of who were informed of the theft by Vice President of Operations, Yvonne Boutte, who had been reassigned to the Los Angeles branch during the months of January through April 2014. 

Earlier this month, members visiting the Los Angeles and South Pasadena branches reported that both offices were closed. This time, President Wiggington did not post a notice on the credit union's Intranet nor did he order placement of a notice on the doors of either branch. Employees arriving at both branch's were surprised and wondered how long the branches would remain closed. 

Employees of both offices were told that the credit union's network had sustained technical issues that caused the closures, however, the Van Nuys branch which shares the same network as the Los Angeles and South Pasadena branches, was conspicuously unaffected. So how is this possible? It's not. As we've often reported since 2009, Charles R. Wiggington, Sr. may be an obsessive liar but he is also an inept one. 

A VICE PRESIDENT BITES THE DUST

During the month of August, notorious Vice President of Operations, Yvonne Boutte, left the credit union. Allegedly, Executive Vice President, Rodger Smock, disclosed that she was ill  and would be gone for awhile, however, she did return momentarily and was observed re-entering her office with Mr. Smock and afterwards, quietly departing the credit union. A notice was posted the following day simply stating she was no longer an employee of the credit union. 

Ms. Boutte's departure is significant despite the efforts by President Wiggington, Sr. to keep her adieu as quite as possible and even with Rodger Smock's divulgence that Ms. Boutte was ill. She was evidently well enough to return to the credit union to be escorted to her office where she picked up some belongings while her other personal property was packed by her friend and subordinate, Ms. Alex Suarez. 

We've received a few messages from readers that asked if she was being terminated for the theft of $1 million in cash taken from the vault of the Los Angeles branch during the period of 2010 through 2012. We doubt it. Ms. Boutte was not appointed Vice President of Operations until after Cindy Garvin was terminated in December 2012. The robberies occurred prior to her appointment  and though we know that Charles R. Wiggington, Sr. has developed a well-founded reputation for targeting scapegoats to suffer the consequences for his blunders, it would be inconceivable to try and attribute the losses to Ms. Boutte for a period in time when she clearly wasn't overseeing operations. 

However, her departure comes immediately following closure of the Los Angeles and South Pasadena branches which were not opened earlier this month, due to an alleged network issue. The excuse seems like another Wiggington ploy to deter attention away from something far more telling, like another audit of the credit union's records. The excuse of a network issue is too similar to President Wiggington's 2012 excuse that the Los Angeles branch was closed due to a power outage that never occurred. And as stated previously, if the closures were in fact due to a network problem then why did the Van Nuys office remain open? 

Mrs. Boutte was hired in 2008 to head the credit union's collection department known as Credit Resolutions. For years, the credit union depended on an a paid contractor to perform collection proceedings but in 2008, the President chose to create an in-house collections department, ending Priority One's agreement with the outside contractor. The contractor was informed by then AVP of Lending, Patricia Loiacano, that Priority One would not be renewing its agreement with the long-time contractor. However, Ms. Boutte arrived at Priority One before the actual agreement between the credit union and its contracted collector was actually in effect.

Following departure of the contractor, Mrs. Boutte brought in three collection agents that she had supervised under a previous employer. The women immediately became known for being aloof and unfriendly. They created a their own clique and segregated themselves from other employees. They also became known for their constant gossiping and whispering. Inarguably, Mrs. Boutte's was fostering development of a divisive culture within the working environment and one neither President Wiggington or Executive Vice President, Rodger Smock, took issue with. 

In October 2009, Mrs. Boutte began what would be a short-lived "friendship" with then newly hired COO, Beatrice Walker. From 2009 through mid-2010, the women would meet, in what they believed to be secretively, in the parking lot located under the credit union's South Pasadena branch and in the alleyways and streets located around the branch, and gossip about staff and the President.  

Mrs. Boutte became a part of Ms. Walker's three-person clique and along with Joseph Garcia the tree plotted their eventual displacement of President Wiggington. Inadvertently aiding their plan, was Board Chair, Diedra Harris Brooks, who began transferring much of the President's authority to Ms. Walker.  Unfortunately, Ms. Walker's caustic personality caused the disbandment of her clique and Mrs. Boutte soon became one of the COO's most avid critics. The day after Ms. Walker was terminated, Mrs. Boutte asked members of her staff if she thought the Board might name her Ms. Walker's successor. 

Mrs. Boutte also established a well-deserved reputation of being disrespectful to employees and speaking to them in a condescending manner. She had no problem belittling staff or showing preferential treatment to those she favored. 

She also chronically violated the credit union's policy governing confidentiality, discussing the credit union's most confidential information loudly, in the collections department. 

In 2012, it was she who informed Alex Suarez, that money had again been stolen from the Los Angeles vault and it was she again who said the money had been stolen by AVP, Pearl Lynnette Fortson. 

In mid-2012, she or someone on her immediate staff, published highly confidential account and personal information about a member, on the Internet. When she was ordered to squash versus resolve, the member's allegations that the disclosures were a violation of the Privacy Act, Mrs. Boutte tried to subdue the member, but her coercive tactics ricocheted and the member, a law student, filed a lawsuit which the credit union settled quickly. 

Mrs. Boutte was confident if not arrogant enough, to often boast about her alleged expertise as a strategist but in her oversight over the Member Services, Credit Resolutions, Teller, and Call Center departments she contributed absolutely nothing that led to actual physical expansion of the credit union or which generated profit. Mrs. Boutte's talk was louder than her walk and in the end, she succumbed to the same demise met by so many who served President Charles R. Wiggington, Sr.

LITIGATION: THE NEW NORM

August fared no better for Priority One whose attorney went to court to argue why his client should be allowed to cross-sue Turner, Warren, Hwang and Conrad. Despite the facade President Wiggington has chosen to use, he evidently has confided with some of his staff that he doesn't want to have to go to court. Of course, unless he manipulates the law as he did in 2013, when he found the opportunity to use his then medical cancer treatments as an excuse by which to obtain excemption from a lawsuit that named his Defendant. 

However, the lawsuit filed against Turner, Warren, Hwang and Conrad is only one of several lawsuits. Here is a summary of the current lawsuits filed both against and by Priority One:

I.

TURNER, WARREN, HWANG, CONRAD

vs

PRIORITY ONE CREDIT UNION

Case: EC063303

Type: Other Contract (General Jurisdiction)

II.

CUMIS

vs

PEARLY LYNNETTE FORTSON

Case: BC542611

Type: Other Intentional Tort-notPI/WD/PD (General Jurisdiction)

III.

CUMIS INSURANCE SOCIETY INC

vs

TURNER WARREN HWANG CONRAD

Case: BC541935

Type: Other professional malpractice, not medical or legal

IV.

LEWIS SEIDEN (Auto Alliance)

vs

PRIORITY ONE CREDIT UNION 

Case: BC563815

Type:  Contractual Fraud (General Jurisdiction)

We will report further in next month's post about the credit union's current legal problems and in particular, about the lawsuit filed in 2014 by Lewis Seiden, the owner of Auto Alliance, one of the credit union's formerly contracted automobile brokers. 

When we last reported about the former automobile broker's lawsuit, Priority One's attorney had filed a motion seeking dismissal of Lewis Seiden's lawsuit on the basis that Mr. Seiden's allegations did not constitute a breach of contract and were in essence, unfounded. 

The Plaintiff responded to each of the credit union's reasons seeking dismissal and the court determined there is a sound basis for the Plaintiff's complaint alleging Priority One breached its agreement with the automobile broker and so, the case will now proceed to court. 

CONCLUSION

Charles R. Wiggington, Sr. and Board Chair, Diedra Harris-Brooks, have spent immense amounts of credit union funds and hours, on campaigns intended to beautify the credit union's abhorrent public reputation. In 2012, they listened to consultants who suggested infusing the Internet with images of the President's and Executive Vice President's biographies, CV's and resumes. At the time, the goal, to draw member interest in the products and services offered by Priority One, but the expensive efforts missed their target. 

We have no reason to believe the consultants ever suggested the officers falsify their employment histories but the opportunity to create an embellished online persona may have been too great a temptation to Charles R. Wiggington, Sr., a president who spent years distorting the truth. Unfortunately, the President repeatedly opts for superficiality over substance and though he repeatedly fails to achieve his unrealistic objectives, he continues to resort to the use of the same old expensive tactics.  

The Credit Union's Board of Directors have aided Charles R. Wiggington, Sr. but gamblng credit union resources on failed and costly campaigns designed to deter attention away from the credit union's decline, embarrassing scandals, illegal acts, and their bungling business decisions. There is no amount of SPENDING that can succeed in cloaking the harrowing record of abuse and mismanagement amassed under President Wiggington and the Board. The efforts to hide his failures and undisciplined personal behaviors have all been sanctioned by the Board of Directors and funded by the credit union. 

In the meantime, we have to wait patiently for the outcome of the many lawsuits being litigated by the credit union. It's important to note that from 2010 through 2013, Priority One spent more than $500,000 on legal expenses. That amount of spending on litigation was astronomical for a credit union that once spent $20,000 to $22,000 annually on attorneys. It was also  financially draining to a credit union's whose business is in decline and whose overhead is above the industry average.* Despite the immense increase in spending during 2010 through 2013, the President and now former Vice President of Operations, Yvonne Boutte, arrogantly boasted the amounts paid out in settlements to Plaintiffs were paltry and meaningless to the organization. They might not have donned such a cavalier attitude had they been forced to pay the settlements from own personal funds.

However, the immense amount of money previously spent on litigation is being overshadowed by the amount which has been spent since April 2014. If the court determines that Turner, Warren, Hwang and Conrad are innocent of the allegations brought against it by CUMIS, then that outcome will serve as an indictment against Charles R. Wiggington, Sr. and his executive staff and will prove that they failed to ensure the credit union's security protocols were being maintained and due to their negligence, enabled one individual, to walk out with more than $1 million in cash from the vault of the Los Angeles branch. 

During the years of 1992 through December 31, 2006, the years proceeding the appointment of Charles R. Wiggington, Sr. to President, Priority One physically grew in size, in the amount of its net income, and in the size of its membership. Its then competent and respected President structured mergers absorbing other credit unions and expanded Priority One's territories. It was a golden age and one that quickly unraveled starting on January 1, 2007, the date Charles R. Wiggington,Sr. was appointed President. If one is seeking evidence of the credit union's decline, then one only need look at the three remaining branches, the amount of the credit union's net income, the amount of lawsuits that have been filed since Charles r. Wiggington, Sr. became President, and the inability of the executive sector to reverse the multitude of problems ushered into existence under President Wiggington- a man whose reality requires fabricating embellishments about himself.  

So What Does the Future Hold for Priority One Credit Union, Part 2 of 2, February 2014

"We must add, that in our opinion, the Santa Clarita branch will close either at the end of this year or in 2015."

So, What Does the Future Hold for Priority One Credit Union , Part 1 of 1, January 20, 2014

Last month, based on our review of Priority One Credit Union's performance during the years, 2012 and 2013, we surmised the credit union would close its small, poorly performing Santa Clarita branch either, later this year or sometime in 2012. You can imagine our surprise to discover that only 11 days after publishing our statement, Priority One permanently closed the doors the Santa Clarita branch. The branch, which opened on February 2, 2012 and closed on January 31, 2014, brings an end to Priority One's presence in the Santa Clarita valley and serves as more evidence that something is horribly amiss at the credit union.

This was the second branch closed by Priority One since January 13, 2013, the date when it permanently closed the doors to its Airport branch. The last time the credit union closed two branches in a less than 60 day period, occurred in 2010 when Priority One closed the doors to its Redlands and Valencia branches. 

The closure of the Airport and Santa Clarita branches conspicuously undermine the President's December 2013 and January 2014 proclaiming that business is "great" and statements by Vice President, Patricia Loiacano, that business is "doing well." The evidence shows business is neither great nor remotely well reminding us that one should never believe anything Priority One's highest officers have to say proclaiming success of the credit union.  

Source: https://priorityonecu.org/community/locations/ 

Almost as pivotal as the closure of Airport and Santa Clarita branches is the February ouster of Priority One's Chief Financial Officer ("CFO"), Saeid Raad.  In 2010, President Wiggington boasted Mr. Raad "makes more money than me!" He also often referred to Mr. Raad as his friend, spending hours each week visiting the CFO in his office, during which the President would boast about his plans for the credit union, his business savvy, and gossip about people he terminated who failed to live up to his loft expectations. 

We happen to know Mr. Raad didn't earn as much money as the President. His annual income approximated $130,000 to $138,000 and though in the world of CFO's, the amount he received may not have been unreasonable or impressive, it was substantial pay at a credit union in rapid decline. 

Mr. Raad arrived at Priority One in 2010, via his associate and friend, former COO, Beatrice Walker.  Initially, Mr. Raad was hired on a contract basis but later in mid-2010, was offered a permanent position replacing former CFO, Manny Gaitmaitan who resigned in December 2009. 

So why was Mr. Raad dispatched from the credit union?  According to staff close to the President, there were several reasons for his removal. Mr. Raad was responsible for reporting accurate financial information needed by the credit union to make business decisions. We've been informed that some of his estimates, including those pertaining to the credit union's Net Income, allegedly over-estimated the amount of future profits. He allegedly failed to identify areas within the operation which had proven most efficient nor did he allegedly succeed in developing methodologies that allowed the credit union to capitalize on its strengths. He is also alleged to have failed to develop accurate forecasts of Priority One's financial future and allegedly failed to to identify areas in business were money was most generated which is needed to develop strategic planning that induces growth. 

In our January 20, 2014 post., we reported that at the end of 2013, the credit union's losses from investments exceeded $500,000 for the entire year. Following the departure of Manny Gaitmaitan in December 2009, the responsibility of determining investments was appointed to now former Accounting Manager, Jennifer Kelly. After Mr. Raad was appointed CFO, Ms. Kelly continued to manage investments. Last year, Ms. Kelly left the credit union and the task was understandably relegated to the CFO. Following our public disclosure that the credit union's were more than $500,000 in the negative, an incensed Board Chair, Diedra Harris-Brooks, allegedly contacted the President demanding an explanation for the losses. What we find peculiar is that as Board Chair, she was well aware of the losses before we published them on this blog. President Wiggington of course, shirked off all responsibility for the losses, attributing these to decisions made by Mr. Raad.  

As CFO, Mr. Raad was as pivotal as President Wiggington, in determining the credit union's financial future. During his brief stay at the credit union, Mr. Raad unlike his predecessor, Manny Gaitmaitan, complied with the President's and Board's every wish. In 2012, at the request of the President and due to increasing financial problems, Mr. Raad instructed the Accounting Department to not pay invoices for at least 3 to 4 weeks after they were received. 

During 2013, when President Wiggington reduced his work hours from 40 to 8 to 16 hours per week, Mr. Raad along with Executive Vice President, Rodger Smock, and Vice President, Yvonne Boutte, inherited his responsibilities. Like his predecessors, Beatrice Walker and Cindy Garvin, Mr. Raad allegedly grew dissatisfied with President Wiggington's mode of governance which may have also contributed to the CFO's ultimate ouster. 

Since 2013, we learned that President Wiggington had told several long-time members of the credit union and representatives of other credit unions that the credit union's decline was caused by insurmountable problems he inherited from his predecessor. The President's ploy is to weave yet another preposterous excuse to escape culpability for what he alone caused. President Wiggington is a man devoid of self-discipline and emotional maturity and who will do all in his limited power to dodge blame for the reverberations born out of his ill-conceived ideas. His excuse, for that is all it is, is both untrue and blatantly absurd. 

On January 1, 2007, the day President Wiggington officially began serving as President, the credit union's Net Income approximated $172 million and it had 9 branches. Its territories extended from Santa Clarita and south to Riverside county. During the first half of 2007, the President traversed the halls and departments of the main branch, loudly declaring his intents to transform Priority One into a state-of-the art credit union that would rival larger, richer credit unions by offered the latest technologies needed to deliver convenience and simply the home banking experience.  Clearly, he would never have boasted about is plans had he inherited a credit union riddled with internal problems. The real issue lies in the fact that Charles R. Wiggington, Sr. was unqualified to lead the credit union. It is this deficiency which led to Priority One's rapid and well-documented decline. We're surprised he hasn't blamed his dog, the Loch Ness Monster or his son, who in 2013 was convicted for selling methamphetamines. 

Unlike President Wiggington, his predecessor was a respected leader in the industry. While President, he compiled an impressive record of success. Under his leadership, Priority One entered into mergers which expanded the credit union's holdings, generated new membership and increased the credit union's Net Income. Under his predecessor, the credit union was able to offer a variety of real estate products and maintained an impressive and growing portfolio. 

In contrast, since his appointment to President, Priority One can no longer service its vast territories forcing it to promote increased use of home banking and Shared Branching. The once impressive array of real estate mortgage loans has been reduced to HELOC.s The credit union's Net Income has plummeted from a $172 million to  $146,318,298 (as of 12/31/2013) and it has closed 6 of 9 branches since October 2010. 

Charles R. Wiggington's legacy is his single-handed unraveling of a once outstanding and promising credit union. He has earned a well-deserved reputation for being slothful and inept. Over the years, he has proven he lacks an understanding of marketing, advertising, and member and employee relations. Over the years, he has demonstrated a propensity for gossip, dishonesty, scandal and wasting of the credit union's valuable resources. With only 3 branches left and efforts to jump start business continuing to fail,  it is highly possible Priority One will be forced to close another of its remaining branches, sometime in the not-to-distant future. The President's stories designed to escape accountability should be viewed as mere childish jabber from a man whose mode of administration is characterized by far flung fiascos.  

The former Airport and Santa Clarita branches were located on U.S. Postal Service properties. The amount spent by the credit union to lease each space was $1.00 per year. In 2013 the credit union received notice the New Post Master in Santa Clarita had decided to increase the amount of the lease for the space located just outside the Santa Clarita Mail Processing plant. Executive Vice President, Rodger Smock, exclaimed, "I can't believe what the post office has done to us." We don't think the post master's decision to increase the amount paid by the credit union was either personal or emotional and merely constituted a sound business decision. Evidently, raising the amount paid to lease the Santa Clarita space was more than Priority One could afford.

Over the year, the President enters into campaigns to tout the credit union's success. In 2011, he visited all branches and told employees that business had improved. In January 2012, during an all-staff meeting conducted in South Pasadena, he again declared a resurgence of business. However, on February 2, 2012, he announced that unless large amounts of new business were obtained immediately, he would be forced to close the Burbank branch. What he didn't tell employees was that he had already notified the property management company overseeing the Burbank office and informed them the credit union would either close in April or May of that year. During the months of February through August 2012, a large number of employees were terminated for failing to attain their assigned monthly sales quotas though the real reason for their termination was an emergent need to reduce expenditures. 

Historically, President Wiggington and his executive staff rely heavily on distorting the truth as a means by which to camouflage failures and hide indiscretions. In January 2010, the President and his then COO informed employees that the credit union had turned a profit despite having ended 2009 more than $500,000 in the RED. On month later, in February 2010, it was revealed that the President transferred funds from a general ledger and reported them as profit, when no actual profit had been generated.

Last December, following closure of the Airport branch, the President declared that business was doing "great" while Vice President, Patricia Loiacano, disclosed that business was performing well. Later that same month on January 31, 2014, the credit union closed the doors to its Santa Clarita branch. 

What the President and members of his posy haven't learned is that no amount of rhetoric will ever hide their well documented failures which are clearly referenced in the credit union's Balance Sheet/Income Statement. The alleged success touted by the President is also contradicted by the more than $26 million drop of the credit union's Net Income and the closure of 6 branches since October 2010. What these losses also attest to is that neither the President or any member of his executive staff possess the knowledge to create strategies that resolve the many problems afflicting Priority One since mid-2008. 

The credit union maintains a satellite office at the NDC, a postal processing plant located in City of Commerce. That office once opened for 3 hours on Fridays. A representative of the credit union's Business Development team would povide employees of the plant, their credit union account and loan balances, dispense information about the credit union's services and products, and accept new membership and loan applications. 

In 2010, the post office offered Priority One a larger office where they could conduct credit union business. Prior to this, the credit union’s office was located inside an office supply room  inside the distribution center. The generous offer meant Priority One would have a more visible and elevated presence at the plant, however, as usual, President Wiggington was unresponsive and failed to order installation of a computer in the new office space. Subsequently, the office could not be utilized adequately and in time, ceased to open all together.  

Here is a record of other blunders committed by the President's and his executive staff which have contributed to the credit union's decline. 

Blunder One

Actually, the first blunder was committed by the Board of Directors who in October 2006 at the urging of Board Chair, Diedra Harris-Brooks, determined Charles R. Wiggington, Sr. was the best and most qualified candidate to become Priority One's next President. 

In November 2006, Directors of the Board announced the appointment of Mr. Wiggington and cited his past banking experience as a key factor for selecting him as the credit union's new President/CEO despite the fact Mr. Wiggington had not been an employee of any bank since 1992. 

Another reason for selecting him to be President was divulged by Directors O. Glen Saffold, Thomas Gathers, and Janice Irving, all of said "Priority One needs a Black President." We'd like anyone of the three to tell us how successful its been for the credit union, members, and employees having a Black President lead the credit union?  Interesting that the deficient Directors ignored Mr. Wiggington's qualifications, a record proving actual accomplishments made while serving as Priority One's Vice President of Operations, personal decorum, dignity, intellect, morality and ethics opting instead to be swayed by skin color.  

Blunder Two

Each year the credit union conducts elections to fill seats on the Board of Directors and Supervisory Committee. In the years before Charles R. Wiggington, Sr. was appointed President, the President and Marketing Director would review a batch of sample envelopes containing ballots prepared for mailing to member's residences. The procedure was part of the credit union's quality control measures to ensure there were no problems with the intended mailings. 

In 2007, President Wiggington decided to circumvent the measure, declaring that reviewing envelopes was not his job. The envelopes were mailed out and soon afterwards it was discovered that on the exterior front side of the envelopes were printed member credit union account and social security numbers. 

When the incident became public knowledge, the President quickly blamed the IT Supervisor. The Board ordered termination of the supervisor, however, the President asked that they only suspend him for 3 days. The President would later tell the supervisor that because of his intercession, the supervisor was not fired. 

To rectify the President's blunder, the credit union offered members one year theft and credit protection.  The cost to the credit union for the protection service was $100,000. 

Blunder Three

In 2007, the President obtained approval from the Board to purchase a new phone system that he alone selected and which he declared would resolve the credit union's member service issues. 

The President drew up the schematics and ordered that all incoming calls be diverted to the South Pasadena branch even though the branch's phone lines were already overloaded with incoming calls. His plan proved catastrophic and dramatically increased the credit union's member service problems. What's more, his bungled plan added to the already workload of employees at the South Pasadena branch. 

Additionally, the President's so-called state-of-the-art phone system suffered technical setbacks which to date, remain unresolved. The sometimes monthly calls to telephone technicians has added to the credit union's expenditures.

Blunder Four

On January 4, 2007, President Wiggington announced his revamping of the credit union's corporate structure and the implementation of a body of AVP's who he promised would help implement strategies that would increase membership and sales. The President hand-selected AVP's from the credit union's management sector and all who he referred to as his "friends." These were: 

• Rodger Smock, AVP of Operations and former VP of Human Resources.
• Jodi Hurst, AVP for Riverside County and former Branch Manager of the Redlands and Riverside branches. 
• Liz Campos, AVP for the South Pasadena, Los Angeles, and Worldway branches and former Burbank Branch Manager.
• Sylvia Perez, AVP for Burbank, Van Nuys and Valencia branches and former Van Nuys Branch Manager.
• Aaron Cavazos, AVP of Lending and former Director of Lending in South Pasadena.

In 2007, just 4 after being promoted to AVP, Mrs. Campos was terminated for kiting. 

In 2008, Mr. Cavazos argued with the President and left the credit union for what was to be a temporary leave of absence. Mr. Cavazos was promoted to AVP despite a long history of complaints from employees, alleging sexual harassment and retaliation. When he requested to return to the credit union, the President terminated him using the excuse that in a review of Mr. Cavazos personnel filed, it had been decided he had amassed too many complaints from employees indicating violations of credit union policies and state and federal laws. 

The AVP sector ceased to exist in March 2013, when the AVP of the Los Angeles and Airport branches was terminated. According to Vice President, Yvonne Boutte, the AVP embezzled money from member accounts. The thefts were discovered during an audit of branch records performed in February 2013. 

The combined costs of salaries paid to the AVP's was in the hundreds of thousands of dollars. Not only did the sector fail to live-up to the hype doled out by the President, not one was successful in implement anything that translated into increased business and membership.   

Blunder Five

In January 2007, the President introduced yet another change born out of his rich and unfettered imagination which he claimed would skyrocket business development. He eliminated the credit union's award winning Marketing Department and replaced it with a Marketing Committee comprised of employees from the Member Services and Loan Departments and none of who possessed any experience or education in marketing. The President asserted confidently that his new plan would substantially increase savings, reducing what he descried as the "outrageous amounts" spent in marketing  by his predecessor. . 

The President demoted the experienced Marketing Director to the post of Marketing Coordinator and appointed AVP, Aaron Cavazos, as the head of the marketing committee despite the fact Mr. Cavazos had absolutely no experience in marketing or advertising. 

By late 2007, the President's inspired plan was beginning to crumble. Internal squabbling amongst committee members and the production of horrendous and ineffective advertising began impacting the credit union's ability to acquire new business. Furthermore, real marketing was replaced by advertising which was reduced to picking graphics and composing poorly written and uninspired copy. What President Wiggington succeeded in doing was disbanding marketing and replacing it with an advertising committee. 

Following Mr. Cavazos termination in 2008 and the departure of almost the committee's participants, the responsibility of "marketing" was appointed to AVP, Rodger Smock, who for a time, was assisted by then AVP of Lending, Patricia Loiacano. Neither was qualified to serve in marketing and through 2008 until late 2009, the two continue to dispense substandard advertising and unwittingly contributing to the credit union's ongoing decline.

Blunder Six

In January 2007, President Wiggington instructed all AVP's to decrease business development focus to postal service facilities and increase efforts to obtaining Select Employer Groups (SEG's). His reason was that he wanted a higher caliber of member comprised of business owners and their employees. The President's efforts to change the credit union's demographics ignored the fact that historically, SEG's showed little interest in the products and services offered by the credit union. As a result, little business was usually obtained from SEG's whereas employees of the postal service had always shown tremendous allegiance to the credit union even during lean economic periods. 

In late 2009, President Wiggington experienced a moment of lucidity, realizing the credit union was not generating income from SEG's. He immediately ordered that business development representatives again increase visits to postal facilities. In November 2010, business development representatives were asked to desist all efforts to induct SEG's. 

Blunder Seven

In mid-2008, President Wiggington easily obtained permission from Board Chair, Diedra Harris-Brooks, to borrow $20 million from the credit union's line of credit. This was another first for President Wiggington as prior to his appointment, no other President had felt inclined to borrow from the credit union's line-of-credit.  The reason for borrowing the money was pure vanity. In 2008, the credit union's asset size had begun to decrease and so the President along with his accomplice, the Board, borrowed the money and was able to create the appearance that Priority One's asset size had increased as a result of new business. The loan cost the credit union approximately $30,000 a month in interest payments alone which further taxed the credit union's waning coffers.  As usual, the President did not possess the intelligence to create effective strategies, so he resorted to a deceptive and manipulative ploy to create the impression of success. 

Blunder Eight

In early 2009, the President began disclosing that he needed a COO who could take many of his projects that he was too busy complete. A few months later, he obtained approval from the Board of Directors to hire a COO. On June 1, 2009, his then "friend", Beatrice Walker, arrived at the South Pasadena branch and though escorted through the office by then AVP, Rodger Smock; he never introduced her by name nor her position title provided. 

In January 2007, the President confided that he created the AVP sector so that he would not have to work to develop new business, leaving the arduous task to his selected Assistant Vice Presidents who he said would have to bring in new business. As it turned out, they failed to carryout their assigned responsibilities and one by one, were terminated over the next 6 years. Similarly, the President hoped the hiring of a COO would further diminish any of his responsibilities.

He hired his then friend, Beatrice Walker, as the credit union’s first COO. Unbeknownst to the President, Ms. Walker found him unqualified to be President and confided to her then allies, Yvonne Boutte and Joseph Garcia that she intended to displace the President and that once she was named CEO, she would promote Mrs. Boutte and Mr. Garcia as officers who would serve directly beneath her.

In the two years which followed, Ms. Walker wasted hundreds of thousands of dollars on failed enterprises including programs that never garnered member interest. She also spent  large amounts building a Call Center whose performance has proven lackluster and even contributed to the credit union’s increasing member service issues. In 2010 and 2011, she remodeled the South Pasadena branch and the lobby of the Burbank branch. She assured the board more people would want to become members if the appearance of the two offices were improved. The Burbank branch closed at the end of May 2012 and the South Pasadena branch is known amongst members for being depressing and its employees appearing unhappy. Evidently, Beatrice Walker was wrong. 

Blunder Nine

In 2011, the President decided to rid the credit union of COO, Beatrice Walker, but not before first seeking to hire a Director of Lending. What Ms. Walker didn't know was that the President had already planned her termination and that a new Director of Lending would assume many of the responsibilities once performed by the COO. 

In 2011, the credit union posted an ad seeking a Director of Lending who would be paid $63,000 annually. After interviewing candidates, the credit union decided on hiring Cindy Garvin as its new Director of Lending. In late June 2011, Ms. Garvin accepted the position and on Wednesday, July 13, 2011, Beatrice Walker was informed she was being terminated. 

Ms. Garvin reported to work at the main branch in South Pasadena, California on Monday, August 1, 2011. At the time she was hired, Executive Vice President, Rodger Smock, issued a memo, informing employees that Ms. Garvin had been come from Clearpath Federal Credit Union where she served in the capacity of AVP of Business Services, Marketing, and Business Development. He described her as both highly qualified and accomplished.  4 months after being hired, President Wiggington promoted her to the post of Chief Lending Officer ("CLO") and appointed her authority over operations for all of Priority One's offices. 

Ms. Garvin's alleged experience failed to resolve the problems created by President Wiggington and the Board. Ms. Garvin also suffered from inability to get along with others. Like President Wiggington, Beatrice Walker, and Vice President, Yvonne Boutte, Ms. Garvin possessed an insatiable predilection for gossip and creating discord. For a period of several weeks in mid-2012, she and Vice President, Yvonne Boutte, would meet not-so-secretly, in the alleys located around the main branch, where they would gossip about employees, the President, and members of the Board. Their private meetings came to a sudden end when we reported their practice on this blog. In 2012, Ms. Garvin along with her subordinate, Joseph Garcia, targeted and terminated many employees who allegedly failed to carryout their assigned duties. 

On December 28, 2012, Ms. Garvin was terminated for unsatisfactory performance. During the 16 months of her employment, Ms. Garvin could not extricate the credit union from the problems authored by President Wiggington. Her alleged expertise, skills, and knowledge in sales and loan development, once loudly proclaimed by EVP, Rodger Smock, were never attested to in anything she endeavored to do. 

Blunder Ten

President Wiggington never liked the idea of a Business Development team. In 2007, he ordered increased scrutiny of all Business Development Representatives insisting they could bring in a lot more new business. The basis for his belief was purely emotional and not based on tangible evidence. At the time, he also confided that he disliked the team because it was the brainchild of his predecessor. His statement possessed no rationale and like so many of his beliefs, was based on pure conjecture born out of his unfettered emotions. 

In 2009, newly hired COO, Beatrice Walker, joined the President's efforts scrutinizing the team's contributions and even exclaimed during a manager meeting that she could bring in more business than the entire team, combined. Of course, Ms. Walker never proved she could bring in more business and President Wiggington never introduced a single proven strategy that could have been provided to the team that might have lent some credence to his imaginary belief of the team's ineffectiveness. 

The team ceased to exist on or about October 2012. Its demise accelerated the unraveling of the credit union's former healthy relationship with employees of the United States Postal Service and Select Employer Groups. In 2013, the President appointed Joseph Garcia as the credit union's sole business development representative though Mr. Garcia has failed on a monthly basis to attain his assigned goal of $150,000 and has been poorly received by employees of the United States Postal Service.

Blunder Eleven

In 2010 as a result of the President's chronic failure to implement strategies that reap new business, increase membership, and generate profit, the credit union's capital began to plummet. State auditors suggested an immediate reduction of the credit union's expenditures and so in September 2010, then COO, Beatrice Walker, and CFO, Saeid Raad, identified four branches whose monthly leases exceeded $5000 each. It was decided to close the Redlands branch in October 2010 and the Valencia branch in November 2010. 

The Valencia branch was actually a successful location, generating far more money than either the Burbank, Redlands or Riverside branches. However, the decision to close the branch was made by then COO, Beatrice Walker. Her decision was purely personal and unrelated to business. At the time, Ms. Walker had experienced a falling out with the Valencia Branch Manager and in act of pure vindictiveness, she ordered closure of the branch. She also planned on subjugating the Branch Manager by demoting her and transferring her to the failing Burbank office. As is typical at Priority One, Ms. Walker’s vindictive act was sanctioned by President Wiggington; Executive Vice President, Rodger Smock; and Board Chair, Diedra Harris-Brooks.

Blunder Twelve

In 2010, Providence St. Joseph Medical Center in Burbank, California, offered the credit union space within the hospital, where it could install a branch that could replace the poorly performing Burbank branch.  Many employees of Providence St. Joseph Medical Center were members of the credit union. This would have introduced added convenience to employees of the hospital while providing an opportunity for Priority One to maintain a newer, more convenient location. 

President Wiggington delegated negotiation of the space to then COO, Beatrice Walker, who in turn, delegated planning to then AVP, Sylvia Perez, and then Director of Project Management, Yvonne Boutte.  The decision to place responsibility for planning of the new branch made no sense because Mrs. Perez was a horrendous officer with a long history of complaints filed against her by employees of the credit union. Furthermore, the project fell far outside of her experience. Similarly, Mrs. Boutte was equally unqualified to negotiate acquisition of the space, much less plan out installation of a branch.  

In the weeks which followed, officers of the hospital made several attempts to contact the credit union about the proposal but neither the President, the COO, the AVP, or the Director of Project Management felt inclined to return their calls. 

In 2011, the hospital informed Mrs. Perez that the credit union would no longer be invited to participate in monthly new hire presentations. The credit union had for years enjoyed the privilege of participating in the orientations during which they spoke to new employees about the benefits of being a member to the credit union. 

President Wiggington was so incensed by the hospital's decision not to include Priority One in new hire presentations that he ordered cessation of all business development efforts to the credit union.  Obviously, President Wiggington did not understand that his actions contributed to deterioration of the credit union's relationship with the medical center. It apparently also didn't occur to him that the credit union needs business from the medical center. 

Blunder Thirteen

In January 2007, the President ordered AVP's and Business Development representatives to reduce focus on obtaining new business from employees of the United States Postal Service (USPS). He ordered that aggressive efforts be made to induct Select Employer Groups ("SEG's") explaining he wanted a different and "better' membership comprised of business owners and their employees. 

The problem with the President's "vision/delusion" is that historically, little business was ever obtained from SEG's. There was also the fact that employees of the United States Postal Service had demonstrated unwavering allegiance to the credit union since its founding in 1926 and had even carried the credit union through lean economic periods. Of course, the facts were inconsequential to a man who rarely relies of facts and ignores the importance of studies that might provide an assessment of the viability of his spontaneous, poorly conceived ideas. 

In 2014, the credit union continues to reap little business from SEG's while its once strong and long relationship with employees of the USPS is tenuous at best. 

Blunder Fourteen

In 2011, Providence St. Joseph Hospital contacted then AVP, Sylvia Perez, and informed her that the credit union would no longer be invited at attend monthly new employee orientations conducted by the hospital. For years, Priority One had enjoyed the privilege of being included in the hospitals new hire orientations during which they were allowed to conduct a brief presentation describing the benefits of being a member to Priority One. 

Incensed by the medical center's withdrawal of its long standing invitation, the incensed President ordered an immediate cessation of all business development activities at the hospital stating, "We don’t need them!” The President's response was both emotional and typical and once again reveals his inability to understand that it is not Providence St. Joseph that needs Priority One but rather the credit union that needed and needs a relationship with the hospital though in 2014, the credit union has lost the clout it once enjoyed with all Providence hospitals. 

Blunder Fifteen

In March 2007, an anonymous letter sent to a Director of the Board disclosed that then newly appointed AVP, Liz Campos, had overdrawn her account more than 24 times during the months of September 2006 and October 2006. The activity occurred while Ms. Campos served as Branch Manager of the Burbank office. Also, when the abuses occurred Charles R. Wiggington, Sr. served as Vice President of Operations and would have known of the abuses. Despite being fully aware of the abuses and having known that over the years, Mrs. Campos had overdrawn her account, he found it prudent to promote her to the post of Assistant Vice President ("AVP"). 

The Director submitted the letter to the credit union's then attorney, William Adler, who ordered an investigation. A subsequent review and audit of Mrs. Campos account disclosed she had been kiting using checking accounts from 3 different institutions. The findings were sufficient to order her termination, however, President Wiggington, and Board Chair, Diedra Harris-Brooks, became incensed with the Director who had submitted the letter to the attorney. During a monthly board meeting, Mrs. Harris-Brooks warned the Director that he was never to confer with the credit union attorney before first bringing a matter to her attention. What is interesting is that despot, Mrs. Harris-Brooks, was unqualified to respond to an alleged federal offense. And though the matter was appropriately referred to an attorney, Mrs. Harris-Brooks and the incensed President, could not but vex their anger against the Director who conducted himself ethically and in compliance to state and federal law. 

During the investigation, the President proclaimed his innocence, asserting he had no idea about Mrs. Campos' abuses yet that would have been impossible in view of the fact he was the VP of Operations. If he truly had been unaware, then it is just one more reason why he should never have been appointed President/CEO as the credit union needed a leader who was vigilant and informed to lead it. 

Blunder Sixteen

In 2008, a former employee filed a complaint with then credit union, William Adler, alleging she had been sexually harassed by President Wiggington, over a period of years.

The attorney ordered an investigation and EXTTI, Inc. was hired to carryout all investigative proceedings. During the investigation, President Wiggington was suspended with pay, a decision approved by Board Chair, Diedra Harris-Brooks. 

The investigation's findings were presented to the Board, though Mrs. Harris-Brooks excluded inviting some Directors to attend the meeting. Unfortunately for the chronically corrupt Board Chair, then Director, Janice Irving, learned of the meeting intended to provide the investigator's findings. Mrs. Irving and Director, Joseph Marchica, attended the meeting to the chagrin of Mrs. Harris-Brooks. The investigator recommended termination of the President. Mrs. Irving voted for his ouster but Mrs. Harris-Brooks, Director's, O. Glen Saffold and Thomas Gathers, and Supervisory Committee Chair, Cornelia Simmons, ignored the documented record of findings and voted for President Wiggington's reinstatement. It was a travesty and one which demonstrated the amoral nature of some of the Board's Directors and of the Supervisory Committee Chair. It also proved that they were each willing to squash tangible evidence proving incidence of a felony. .

Blunder Seventeen

In 2009, at the recommendation of then COO, Beatrice Walker, the credit union hired the services of Lillestrand and Associates, a company who works with many credit unions in improving productivity and morale. 

The founder of the firm, Loren Lillestrand, arrived at the credit union via his "friend", Beatrice Walker. In meetings conducted with credit union staff, he disclosed that he intended to gauge staff interests though tests that would determine their likes, dislikes, strengths, weaknesses, and interests which would be used to create a better, more knowledgeable and more effective work force. What he did not disclose to employees is that he was hired to also help flush out "enemies" of the President who were attempting to topple Mr. Wiggington's imaginary empire and subvert his alleged efforts to develop new business. 

Mr. Lillestrand who is actually well intentioned, agreed to the proposal but failed to concretely prove which employees were truly undermining the President. Furthermore, his findings submitted to COO, Beatrice Walker, which should have been used for staff development, were never implemented. In the end, the credit union spent more than $30,000 to obtain information that was never utilized. 

In 2012, the President hired other consultants who determined that business could improve and the credit union's reputation could be salvaged, if the credit union website were revamped and dozens of the President's and EVP's bios posted throughout the Internet. It was a dull idea ignoring the history of abuses and irresponsible acts committed by the President and in the end was tantamount to putting lipstick on a gorilla.

Blunder Eighteen

The cherry atop the President's history of blunders are his realignment of the credit union's Human Resources Department. 

For years, the department was under directorship of Rodger Smock. In August 2011, then COO, Beatrice Walker, disclosed that Mr. Smock was ineffective, lazy, and overpaid. She removed his authority over Human Resources and transferred it to herself. However, a verbal complaint filed by the Valencia Branch Manager, alleged Ms. Walker had harassed, persecuted and retaliated against the Branch Manager, including alienating the Manager from her staff. Then Human Resources "clerk", Esmeralda Sandoval, referred the complaint to Rodger Smock and President Wiggington. A few days later, the two drove to Valencia to inform the Branch Manager, that Ms. Walker had ordered closure of the branch as part of the credit union's efforts to streamline operations and reduce expenditures. At the time, President Wiggington asked the Branch Manager and Business Development Representative assigned to Santa Clarita, to provide him with letters documenting the acts and statements verbalized by Ms. Walker. 

The President returned to his office in South Pasadena and contacted Board Chair, Diedra Harris-Brooks. Three days later, a message posted on the credit union's Intranet, informed employees that Ms. Walker would no longer oversee Human Resources and that the department's new Director would be then Training and Education Manager, Robert West. 

However, secretly and unbeknownst to employees, the department continued to be managed by Mr. Smock simply because Mr. West had no prior in anything related to Human Resources. 

In July 2011, days after termination of Beatrice Walker, Mr. Smock posted a notice on the Internet advising employees that Human Resources was being renamed Employee Services and its new Director would be Robert West who would be assisted by newly appointed Employee Service Manager, Esmeralda Sandoval. 

The department has proven to be a horrendous intermediary between the credit union and employees. The appointment of Mr. West as Director is a ruse by which to divert attention from the history of failures committed by Rodger Smock. The department is nothing more than a vehicle or tool, which serves to satisfy the President and Board's wishes. The department's decision to exempt many officers from the disciplinary actions described in policy led to the filing of 4 lawsuits by former employees during the years of 2010 through 2013. The settlement of 3 of those lawsuits not only lend credence to allegations that Priority One's officers violate state and federal laws and choose to circumvent policy, it also validates assertions of the incompetence of the department's officers. 

And though the credit union has closed 6 of 9 branches since October 2010, the department continues to employ three officers whose combined salaries exceed $200,000 per year. The entire staff- Rodger Smock, Robert West, and Esmeralda Sandoval, should have been terminated years ago and replaced with new, better education, more qualified and certainly, far more ethical personnel who do not easily compromise ethics for what is politically advantageous. 

CONCLUSION

2008

The borrowing of $20 million by President Wiggington from the credit union's line-of-credit in 2008 was a clear and indelible signal that some was amok at Priority One Credit Union. And despite the loan of $20 million, on December 31, 2008, the credit union reported losses for the year in the amount of -$690,652. On December 31., 2007, the credit union ended that year $683,589 in the Black.  So from 12/31/07 through 12/31/08, the credit union incurred loses of -$1,374.241! 

2009

In retrospect, the loan obtained from the credit union's line-of-credit was intended to maintain a record that Net Income was high,  knowing that most members would not understand the actuaries referenced in the credit union's Balance Sheet/Income Statement. And though the credit union sustained tremendous losses during that period, the Net Income appeared to remain high, though clearly and based on the references found in their Income Statement, immense losses were sustained as a result of the President's inability to implement anything that reaped real profit. . 

At the end of 2009, the credit union reported losses in the amount of a whopping -$5,458,432. Despite the staggering losses, the President continued to insist business was great. At the time, his tidings of great business were joined by then COO, Beatrice Wiggington who insisted new business had been gotten at the end of the year though undeniably, there was no evidence of this in the credit union's financials. Furthermore, the Board of Directors under Board Chair, Diedra Harris-Brooks, was apparently unconcerned and took no remedial measures to determine why business had declined and why President Wiggington's decisions were not only failing to achieve their intended purpose but causing the credit union to hemorrhage losses.    

2010

On December 31, 2010, the credit union ended the year in the negative, reporting losses in the amount of --$563,830. 

Over the years of 2008 though 2010, the Board remained unresponsive and refused to enact inquiries needed to understand why the President's decisions were causing losses of income. And though the Board has a responsibility to ensure that the best interests of members are realized, Priority One's board has over the years, been unusually unconcerned. In fact, their failure to act is disturbing. Could it be that President Wiggington was correct when he said the Board did not understand the credit union's financials? Based on the Board's ineffectiveness it is reasonable to conclude that none of the Directors possess a basic understanding of finance or accounting practices nor do they comprehend the actuaries contained in the balance sheet and income statement. 

The closure of the Airport branch on December 13, 2013 and closure of the Santa Clarita branch on January 31, 2014 in addition to the closure of 4 other branches in the period between 2010 and 2012, serve as evidence that Charles R. Wiggington, Sr. and the Board, have been plutonium to the once successful credit union. Horrendous business decisions, undisciplined and embarrassing behaviors, an inability to comprehend the internal workings of the credit union have left Priority One a mere shadow of its former self. 

The President's reliance upon consultants to try and dredge Priority One out of its mire has proven to be an expensive and futile enterprise. The expensive efforts implemented by consultants have failed to increase membership, promote business development and failed to resolve the myriad of issues created by Priority One's highest officer. 

In mid-2012, the President again hired consultants who after a study of the credit union's service levels and product portfolio determined that what Priority One most needed was a revamped web page and a spanking new smartphone app. These alleged enhancements which we will describe in next month's post, were alluded to in the President and Board Chair's address contained in the 2012 Annual Report and touted as indicators that Priority One's business was improving.  The reference to the revamped web page and app were an attempt by two simpletons to try and convince members and employees that a new web page and smartphone app are synonymous with success. The proof that Priority One is failing versus prospering, is proven by the credit union's Balance Sheet/Income Statements and its quarterly Financial Performance Reports versus the President and Board Chair's chronic lip service. 

The truth is, Priority One remains in a state of decay. What's more, President Wiggington and his overpaid posy have never developed anything that succeeds in generating a level of profit needed to positively impact losses. Furthermore and as cited by Bankrate in early 2013, Priority One's overhead is precariously high. The revamped web page and app did not contribute to the credit union's decline but neither did they serve to resolve the issues underlying the credit union's far flung problems. 

As we have often published, the President, the executive sector and the Board of Directors remain responsible for delving out solutions for the very problems they alone created. Their efforts thus far have been purely superficial and refuse to consider that they are the single cause behind Priority One's deterioration. 

The reason for the credit union's failures is that  the solutions sought by the President and Board of Directors, are purely superficial and refuse to address the causes of the credit union's far flung problems which are the President, the executive sector, the Board of Directors, and the seemingly invisible Supervisory Committee. 

Yesterday, February 19th, a member posted the following comment expressing frustration and dissatisfaction over the level of unsatisfactory service being dispensed by Priority One nowadays.

Anonymous.....

I called the credit union today and waited 35 minutes until someone finally answered the phone. I told Tina, the person who answered the phone, about how long I waited on the line and she replied, "That's alright, we're working on it!"

What a moron. She doesn't understand what member service is. I wanted to bitch slap her over the phone. I'm closing my account on Friday along with the accounts to my wife, 2 sons and daughter. 

Enough is enough. This isn't the first time I have to wait and wait and this isn't the first time I have to speak to a moron. Management is jacked up so its no wonder they hire jacked up people.

February 19, 2014 at 10:20 PM

Its evident that a new, revamped web page and smartphone app are not going to resolve the problems impacting the credit union's apparent inability to jump start business or the many issues afflicting member service. So what lies ahead for the rapidly shrinking credit union? Since 2009, we've predicted that Priority One will continue to sustain losses simply because Charles R. Wiggington, Sr. is unqualified to serve as President and CEO. It is important that the same factors which caused Priority One's decline over the past 7 years, remain intact. 

It is also important to note that the credit union's capital remains high which is a key reason why Priority One remains in business. However, the closure of 6 branches since October 2010 are nothing more than a pardon, extending what will be the credit union's ultimate demise unless they experience a sudden and miraculous reversal of their current misfortune or if they are taken-over by another credit union. Until then, their survival will continue to depend on expense reductions, possibly future branch closures, and leveling increased fees and charges to its membership. 

In 2014, account closures continue to exceed account openings and though the credit union aggressively pushes loan development, the fact is, their monthly Income Statements show an unhealthy and increasing reliance on charges and fees. What's more, the credit union's relationship with employees of the United States Postal Service and Providence hospitals may have reached an irreparable state which has coupled the credit union's inability to promote its products and services. Additionally, Priority One no longer sends representatives to monthly Chapter Meetings and chamber and community sponsored events. 

At Priority One, convenience is a thing of the past forcing the credit union to place increased emphasis on Shared Branching and Home Banking services. Priority One no longer have a presence in all of Riverside County or the entire Santa Clarita Valley. The Santa Clarita branch was constructed in late 2011, by former Post Master, Ralph Tapia, as a good will gesture to the credit union for its years of service to the postal community. Clearly, Charles R. Wiggington, Sr. was unappreciative and did nothing to promote the credit union's northern-most location. However, the good news is, the space formerly occupied by Priority One is scheduled to be taken by another credit union. 

The worst part of the President's bungling and the Board's paralysis is the ordeal they have subjected present and former employees to in their quest to maintain control of a crumbling credit union managed by a contingent of unimpressive and incompetent officers who appear to be playing opossum as the credit union sinks deeper into the mire created by President Wiggington. 

Life is tough, but it's tougher when you're stupid.

John Wayne

To be continued......