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SHOWN TO THE RIGHT, ARE THE CONTENTS OF THE 11/27/12 LETTER SIGNED BY PRIORITY ONE CREDIT UNION PRESIDENT, CHARLES R. WIGGINGTON, SR. IN COMPLIANCE TO THE TERMS OF SETTLEMENT AGREED TO BY THE CREDIT UNION AND A MEMBER WHO SUED THE CREDIT UNION, ALLEGING THEIR WILLFUL VIOLATION OF THE PRIVACY ACT.

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Showing posts with label Robert West. Show all posts
Showing posts with label Robert West. Show all posts

Wednesday, July 29, 2015

Defining What's Normal, Part 3 of 3



During the month of July, Priority One Credit Union's attorney filed yet another motion, this time contesting the reasons filed by Turner, Warren, Hwang, and Conrad seeking the dismissal of the credit union's counter-lawsuit. 

The trial of the lawsuit filed by CUMIS, accusing Turner, Warren, Hwang, and Conrad of breaching its agreements with Priority One Credit Union during the years of 2008, 2009, 2010, 2011, 2012, and 2013, has not yet begun. Presently, Turner, Warren, Hwang, and Conrad and Priority One Credit Union remain locked in litigation as Turner, Warren, Hwang and Conrad seeks dismissal of the counter-complaint filed by Priority One this past.

Additionally, the court has not yet made a decision regarding the motion filed by Priority One's attorney, John C. Steele, requesting consolidation of the lawsuits filed by CUMIS; Turner, Warren, Hwang and Conrad; and the cross-complaint filed by the credit union. In the meantime, the bankruptcy filing by former AVP, Lynnette Fortson, who is accused of stealing $1 million in cash from the vault of the Los Angeles branch, remains in review.

If litigation seems chaotic, it's because it is. Nowadays, Priority One is characterized more by its legal entanglements than for business. This change in standing began in the years following January 1, 2007, the date Charles R. Wiggington, Sr. began his appointment as President. 

Despite the onslaught of lawsuits filed by and against the credit union, this past May, President Wiggington entered into yet another of his verbally and completely fictitious campaigns declaring that business is good and improving. The problem with the President's periodic proclamations is that they're never true and constitute pure conjecture. He could lend tremendous credibility to his statements if he would support them with actual documentation but he doesn't because these sporadic efforts to save face are untrue. Unfortunately, for the disastrous President, the credit union's quarterly Financial Performance Report ("FPR") and monthly income statements/Balance Sheets all omit anything that could be interpreted as a resurgence in business. What's more, as members and readers of this blog may have discovered, President Wiggington has yet to release copies of the 2014 annual report which for years, was distributed to attendees of the annual meeting conducted each May 27th at the South Pasadena branch. What's more, if you'll visit the credit union's website, you'll note that the President has not allowed publication of the report. HIs censorship and control of the credit union's reports suggest that President Wiggington has much to hide.

The President's efforts to paint a rosy picture of Priority One's financial standing and performance was aided during the month of May, when Robert West, the Director of Employee Services composed an online review praising  HigherUp's, Rocket Solution.  Rocket Solution is an analytical program. According to Mr. West, Rocket Solution has helped the Human Resources Department's refine its processes and extrapolates employee data which is analyzed and used to improve the credit union's bottom line. It is hardly coincidence that Mr. West's review comes at a time when the credit union is in desperate need for positive publicity though the Director's efforts are typically feeble, obvious and fail to deter attention away from the credit union's all too public reputation. 

Before presenting excerpts from Mr. West's review, we'd like to revisit some past incidents involving Mr. West which attest to his character and validate whether or not Mr. West has ever contributed to improving the credit union's bottom line, promoted employee morale, or served to impel growth and development of new business.  


Over the years, some of our posts have elicited negative comments about Robert West. The Director of Employee Services has been a staple of the credit union for several years though his greatest promotions came via his friend, President Wiggington. In the years before January 1, 2007, the date Charles R. Wiggington, Sr. was appointed President, Mr. West served as the credit union's sole Trainer and later, under President Wiggington, as Manager of Training and Education. Prior to 2007, he would periodically describe Priority One as a place where "the devil lives." A rather harsh and judgmental declaration by an officer of the credit union. 

In 2006, he spent months writing a self-help book which was not related in anyway to his position as Trainer though he worked on the book during business hours. In 2006 and again in 2007, he was periodically seen by employees and officers, sleeping at his desk. You can read more about some of Mr. West's other antics at Robert West.

In 2009, President Wiggington asked that Mr. West rewrite the credit union's mission statement. The President stated that the statement composed under his predecessor failed to express his vision for the credit union and its relationship to its members. In 2009, Mr. West's revamped statement was unveiled during the May 2009 Annual Meeting conducted in Pasadena, California. The statement, shown below, was copied from the credit union's Facebook page.

Our mission: "To help our member-owners and employees achieve financial fitness. We are committed to providing quality products and services that help you win with money."  

We must point out that the Mission Statement published in 2009, differed slightly from the its current version and included language which promised to show members and employees how to "win with money." Branch closures, a decline in the amount of net income, and a 5-year wage freeze prompted President Wiggington to amend the statement in early 2014. 

FOOT IN MOUTH
Though President Wiggington's failures, abuses and violations of state and federal laws are well documented, he has always found an avid and unwavering supporter in Mr. West. As we've reported in 2010, during all-staff meeting conducted at Almansor Court in Alhambra, California, Mr. West stood before a room full of employees and chastised the President's critics, labeling them "haters". During his chastisement, he attempted to elicit pangs of guilt from targeted employees by reading the following verse: 

"If your enemy is hungry, feed him; if he is thirsty, give him something to drink. In doing this, you will heap burning coals on his head." - Romans 12:20

Not surprisingly, his manipulation of Biblical scripture back-fired and served to increase dissension between staff and management. Though he had hoped to subjugate employees using amateur manipulative tactics, following the meeting, most of his audience exclaimed that they did not know what the verse he read meant while others admitted to listening to his spiel. 

2008

In 2008,  a member visited the credit union, leaving a baby she was taking care of, locked in her car in the visitor parking lot located at the South Pasadena branch. Though she was advised by employees that the baby was crying the member replied that she would return to her car in a few minutes. Because President Wiggington was away from the branch for the day and because Rodger Smock could not be located, an employee informed Mr. West that a baby had been left locked in a car. He immediately ordered that the police be called. Police arrived and arrested the member while firemen extricated the baby from the automobile. 

The following day, upon being advised of the incident. President Wiggington exploded demanding the names of the employees who called the police. When told that they obtained from Mr. West to call the police, the President threatened each employee with termination should they ever choose to report a member to the police. Mr. West denied ever having instructed the employees to call the police. 

2010

In August 2010, then COO, Beatrice Walker, took control over Human Resources. At the time, she revealed she intended to force aged Executive Vice President, Rodger Smock, into retirement because in her opinion, he was "lazy" and "overpaid". She also disclosed she intended to terminate Robert West who she described both "unnecessary", "overpaid" and ineffective as a trainer. 

Because much of his power had been transferred to Ms. Walker by Board Chair, Diedra Harris-Brooks, President Wiggington panicked because he knew he would be unable to retain the employment of either Mr. Smock or Mr. West who were the only two ethically pliable supporters of his regime. However, Ms. Walker's plans were derailed when the then Valencia Branch Manager visited the South Pasadena branch and filed a verbal complaint with Esmeralda Sandoval, alleging that Ms. Walker had: 
  • Estranged the Branch Manager from her staff and other Branch Managers
  • Sexually harassed and stalked her
  • Created a hostile working environment; and 
  • Subjected the Branch Managers to different standards than those set for other managers
In September 2010, the President and Mr. Smock drove to the Valencia branch to inform the Manager that her branch was scheduled to close at the end of October 2010. After advising her of the impending closure, he asked her to elaborate on her complaint against Ms. Walker. At the end of the meeting, he turned to Mr. Smock and said he was going to remove Ms. Walker from oversight of the Human Resources Department. President Wiggington also informed the Branch Manager that he would offer her a post as Assistant Branch Manager at the Burbank office though her salary would be reduced "slightly." 

Three days later, the president issued a notice on the credit union's Intranet announcing that Robert West would not serve as Director over Human Resources despite the conspicuous fact Mr. West was wholly unqualified to head the department. The reason why Mr. West was placed over Human Resources is quite absurd. At the time, Rodger Smock, the Director informed the President that he did not want any involvement in the Valencia Branch Manager's complaint. He felt that his involvement could provoke Ms. Walker who he knew was planning to terminate him. 

Mr. West was appointed Director and given the responsibility to handle the complaint against Ms. Walker. Mr. West's ineptitude was quickly revealed because he continually had to confer with Mr. Smock to learn how to proceed with the complaint. 

At the end of September 2010, the Branch Manager was called on her credit union cell phone by then Human Resources "clerk", Esmeralda Sandoval and advised that she had eight (8) hours in which to either accept the credit union's offer to work in the Burbank office in the capacity of Assistant Branch Manager or accept the credit union's severance package. At the end of the day, the Branch Manger called Ms. Sandoval and told her she would accept the severance package. Ms. Sandoval informed the Branch Manager that the credit union would require a letter stating her decision. The Manager submitted a letter to Ms. Sandoval, via email. The letter disclosed that she would accept the severance package and that her final date of employment would be October 31, 2010. 


Several days later, Ms. Sandoval called the Branch Manager and informed her that she would have to work until November 15, 2010, to be eligible for the severance package. The Branch Manager reminded Ms. Sandoval that she had never stated that her final day of work would be November 15, 2015. Ms. Sandoval at first lied and said she had provided the Branch Manager with the date, however, Ms. Sandoval's dishonesty was proven when the emails sent to the Branch Manager regarding the matter all omitted a required last day of employment. The Branch Manager was afterwards contacted by Robert West who told her she must either work until November 15, 2010 or forfeit her severance package. The Branch Manager responded by sending Mr. West the following letter:

Mr. West conferred with the President and Ms. Walker, who in turn contacted Board Chair, Diedra Harris-Brooks. Mrs. Brooks contacted the credit union attorney and it was decided that credit union due to its own negligence, must provide the Branch Manager with the severance package that had been offered by the careless, Esmeralda Sandoval. Following the decision to reinstate the offer, Mr. West returned to his role as trainer and Mr. Smock resumed his capacity as Director over Human Resources. 

Mr. West Writes a Review




Clearly Priority One is not providing member's convenience, efficiency or financial services that are so affordable that they did not entice approximately 4,000 members to retain membership.  


Now as you read Mr. West's review, not that he fails to draw a correlation of how HigherUp's Rocket Solution will provide Priority One's Human Resources Department "new business insights. The fact that Human Resources is now allegedly "working faster and more strategically to improve the company's bottom line" is unaccompanied by actual evidence, like the credit union's own reports proving that Priority One's bottom line has been improved. 

Mr. West's review is permeated by a whining tone, describing his personal frustrations as he tried to juggle the use of three different programs with each requiring the use of its own password. We certainly feel for Mr. West and the terrible plight he must have undergone. We'd like to address some of the statements contained in his review. 
  • On January 1, 2007, Priority One's membership approximated 30,000. Eight years after Charles R. Wiggington, Sr. was appointed President, membership has dropped to approximately 26,000. That's a loss of 4,000 members over an 8 year period. 
  • Prior to January 1, 2007, the date Charles R. Wiggington, Sr. became President, the credit union employed more than 150 full-time employees and only periodically hired temporary staff. 
  • Prior to January 1, 2007, Priority One the following branches:
Worldway Branch
Los Angeles 
Van Nuys Branch
Valencia Branch
South Pasadena Branch
Redlands Branch
Riverside Branch


On the day Charles R. Wiggington began serving as President, the Marina Del Rey branch had already closed because the postal service intended to use the space occupied by that office. Other branch closures and openings, ordered by President Wiggington include:


Redlands Branch closes September 2010
Valencia Branch closes October 2010
Riverside Branch closes April 2011
Santa Clarita Branch opens February 2012
Airport Branch closes December 2013
Santa Clarita branch closes January 2014.

From an economic and budgetary point-of-view, Priority One's opening and closing of branches over the last eight years constitutes poor, actually, horrendous planning and was both fiscally irresponsible and detrimental to the credit union's bottom line. 

If the implementation of HigherUp's analytical program is intended to improve Priority One's bottom-line than one has to ask why was Priority One's net income increasing annually under President Wiggington's predecessor and why has it dropped by more than $18 million since January 1, 2007, the date Charles R. Wiggington, Sr. began serving as President? 

We extracted the following information from NCUA.org:


The current Board of Directors along with President Wiggington have proven they possess an undisciplined proclivity for spending and wasting credit union funds. This is partially attested to by the fact that currently, Human Resources employs three officers when prior to January 1, 2007, the department was wholly under management of then Vice President of Human Resources, Rodger Smock. Nowadays, the small and insignificant credit union is staffed by Mr. Smock, Mr. West and Employee Services Manager, Esmeralda Sandoval.

According to Mr. West, he was "frustrated with our old systems, which were time-consuming and difficult to manage. To get to even the most basic employee information, I had to access three different vendors’ systems with multiple passwords and complex authentication. And none of the systems could talk to each other. If I wanted to access and combine data from our different payroll, benefits, applicant tracking, and time and attendance systems – I was out of luck.”


Of course Mr. West was frustrated. . He holds a position which he is ill qualified to serve in. In 2011, he was appointed to serve as Director of Human Resources without possessing any experience, an education, or skills in anything related to Human Resources. His appointment was not motivated by either his qualifications or need. Mr. West was appointed as a result of cronyism. It is his "friendship" and blind loyalty to the President that has secured his continued employment. He is clearly dispensable and wholly unnecessary to the credit union's deteriorating infrastructure.  

Apparently, the "Director" of Employee Services is easily frustrated. It is not uncommon for employees of many companies to use more than one program to process their work and certainly having to use more than one password is neither challenging or frustrating unless of course, you're Mr. West. We also don't understand how Human Resources, a department staffed by three officers, can't seem to handle managing Priority One's three remaining branches and a staff which Mr. West wrote, employs 50 full-time employees and 14 part-time employees What would Mr. West have done had he worked in the department prior to January 1, 2007, when the credit union had many branches and employed more than 150 full-time employees. Maybe the problem is that Robert West doesn't possess the skills needed to multi-task or he lacks the ability to expertly prioritize. 




THE TRIAL THAT WOULDN'T START


During the month of June, Priority One's attorney, John C. Steele, filed a motion refuting Turner, Warren, Hwang, and Conrad's reasons asking the court to dismiss Priority One's counter-lawsuit against their former external auditor.

The long list of pre-trial conferences clearly indicates that Priority One's legal expenses in 2015, must be astronomical adding to the more than $500,000 spent on litigation during the years of 2010-2013. Nowadays, Priority One is defined by its unending legal problems. 

We're recently wondered about the abilities of CUMIS' officers to make sound decisions as their alliance to Priority One Credit Union is not only illogical, it seems a horrendous business decision and gamble. That said, last month one of our readers posted the following comment which aptly and in great detail, describes the reason why CUMIS may be suing Turner, Warren, Hwang, and Conrad and what may occur should CUMIS lose its lawsuit:

June 24, 2005

Look ... I don't see Wiggington lasting 12 months.

Some points & issues to clarify. CUMIS (the insurance & bonding company) paid the claim for dishonesty... that's the insurance they provide. For paying the claim, the CU gives the bonding company the 'right of subrogation' .... this means it gives the insurance company the right to go after the individual(s) that were responsible for the loss.



By extension, the insurance company is trying to minimize its losses by looking at other potential sources for getting their money back. Assuming the responsible person(s) do not have $1,000,000 anymore they will simultaneously look elsewhere.



So, they are looking for 'Big Pockets'....one of which is TWHC CPA firm. The Board & Wiggington were pointing their fingers at TWHC for not discovering the defalcation and the 'embezzler'for dishonesty.



In reality they should being pointing at themselves in the mirror. They are the problem.



It's going to get real messy when public filings start coming through.



In addition, it is very possible that Wiggington will then be placed on CUMIS' "BLACK LIST" of non-insurable risks. Each employee or official of a federally insured financial institution has to be "bondable". Wiggington's record will become more public and other policyholders (credit unions) will see the risk that the insurance company is continuing to insure.....they are the ones paying Wiggington's claims.... they will want that to cease.

Wiggington will get the dreaded letter & phone call in the next year, for sure & he's gone. A week or two before official notification to Wiggy, the Feds and State Examiners will all converge on the credit union ..... don't you think they will count every penny?

CUMIS provided a report in which their "expert" asserts that Turner, Warren, Hwang and Conrad have failed to adhere to established auditing practices in the years 2008, 2009, 2010, 2011, 2012 and 2013. It appears, CUMIS is attempting to strengthen its position buy inducting the participation of the credit union whose counter-lawsuit will serve to further impugn Turner, Warren, Hwang, and Conrad's public reputation and abilities. What is interesting is that without the findings of CUMIS' expert, Priority One may never have realized that their former external auditor had allegedly violated auditing practices. As usual, the bad folks at Priority One Credit Union seemed oblivious of the integrity of work being performed by their external auditor. It's this same lackadaisical problem that may have resulted in the theft of more than $60,000 in 2009, perpetrated by a former receptionist; and the 2010-2012 thefts totaling more than $1 million in cash, allegedly absconded by a now former AVP.  Something is sorely amiss at Priority One. Its Supervisory Committee have proven themselves incapable of protecting credit union assets. The President and the people who oversaw operations* during the years of 2009 through 2012 have evidently failed to ensure the protection of Priority One's assets and have proven quite incapable of protecting Member funds.   

*2007-June 2009: Operations was managed by EVP, Rodger Smock
June 2009-July 2011: Operations was overseen by COO, Beatrice Walker
July 2011-December 2012: Operations was overseen by CLO, Cindy Garvin
January 2013-Present: Yvonne Boutte currently serves as VP of Operations

In David Morrison's article, "$1M Vault Pinch Hits Priority One" which appeared in the March 07, 2015 publication of the CU Times, the author states that in their lawsuit, CUMIS accuses Turner, Warren, Hwang and Conrad of negligence in auditing the credit union's financial records and that they "should have known that [Lynette] Fortson [the AVP] was employed at the Los Angeles County Branch and that one of her duties was to perform reconciliation for that branch." CUMIS also told the reporter that Turner, Warren, Hwang and Conrad "had never opened the vault, counted the vault cash, reconciled the counted vault cash to the general ledger account or reviewed the balancing sheets prepared by Fortson during the course of their reconciliation of cash accounts" and if they had, Turner, Warren, Hwang and Conrad would have discovered the "fraud and embezzlement scheme." 


We recently spoke to a former officer of the credit union who informed us that in the years before Charles R. Wiggington, Sr. was appointed President, the Supervisory Committee regularly visited branches to count vault cash. The end of this practice by the Supervisory Committee seems part of a common phenomena occurring at the credit union. In 2007, Charles R. Wiggington, Sr., refused to review a batch of sample ballots which if he had, he might have noticed that member social security and account numbers were printed on the front exterior side of the the envelopes. At the time, he refused to review these because in his words, "I'm President, I don't do that!"  The fact that in 2009, the credit union employed an internal auditor and COO proved insufficient to discover that a receptionist was pillaging funds from member accounts. 


Due to the length of Attorney John C. Steele's response, we are only publishing the more relevant points of his rebuttal. 




This is the first reference in the long record of documents filed with Superior Court that finally provide more specific detail about the thefts which occurred at the Los Angeles branch during the years of 2010 through 2012. As we've disclosed in previous posts, CUMIS has stated in its initial filing that the thefts began either in "early" or "late" 2010. We find it odd that following an extensive investigation by its "experts" that they could not pin point a more specific or actual date when the internal robberies began prompting us to wonder if the amount of thefts exceed the $1,005,000 CUMIS concludes was stolen. More importantly, did the robberies begin prior to 2010 and possibly on a date before Turner, Warren, Hwang and Conrad were hired. 

In 2009, Turner, Warren, Hwang and Conrad were hired to conduct an extensive audit of the Los Angeles branch's records. At the time, the audit was reported after a member complained that money had been taken from her more than $11,000 IRA leaving a balance of less than $5,000. The audit proved that more than $60,000 were embezzled by a former receptionist who pillaged member accounts and with the assistance of friends and family, withdrew embezzled funds from an ATM located in the city of Long Beach, California. During the audit, then AVP, Lynnette Fortson sat alongside Terry Nabors, the auditor from Turner, Warren, Hwang and Conrad. She remained in the office with him for the three weeks during which he audited her office's records. President Wiggington was well aware that she forced her inclusion in the audit but was apparently unconcerned by its inappropriateness.  Why would the AVP deem it necessary to sit alongside the auditor if she, herself, was not auditing records? We are suspicious of her motivation for remaining in the office with Mr. Nabors during the three weeks in which he reviewed records. 



Attorney Steele states that on December 5, 2014, Turner, Warren, Hwang and Conrad sued Priority One's refusal to pay the outstanding balance of $68,299.79 due for the report created by Turner, Warren, Hwang and Conrad from their March 2013 investigation of the Los Angeles branch's records. 

The cross-complaint filed by Priority One Credit Union not only contests payment of the unpaid balance which Attorney Steele has described as "ridiculous" but sues Turner, Warren, Hwang and Conrad for providing inaccurate reports to the credit union for the years of 2008 through 2013. It should be deemed nothing less than outstanding and in Mr. Steele's words, "ridiculous", that Priority One Credit Union never realized that the reports provided to it by Turner, Warren, Hwang, and Conrad were inaccurate and produced out-of-compliance with established auditing protocols. 

Furthermore, Attorney Steele states that Priority One was unaware of the alleged negligence committed by Turner, Warren, Hwang and Conrad until April 24, 2015, when they received a report produced by CUMIS' "expert" and which asserted numerous alleged violations committed by the credit union's external auditor. 

  


Again, Turner, Warren, Hwang and Conrad are innocent until proven guilty. Subsequently, Mr. Steele's statement that the external auditor "failed to comply with the terms of its contracts for years" constitutes a mere allegation. 



Attorney Steele, declares that Turner, Warren, Hwang, and Conrad's lawsuit against Priority One for its failure to pay $68,299.76 due the external auditor failed to "acknowledge" or mention, that it served as Priority One's external auditor from 2008 through 2013, during which it provided year-end audits. If Attorney Steele is inferring that Turner., Warren, Hwang and Conrad purposely avoided disclosing this fact, it seems irrelevant since they are demanding payment from the credit union for services rendered in March 2013 and no other year. 

Attorney Steele continues, stating that The $168,299.79 initially charged by Turner, Warren, Hwang and Conrad is nothing less than "ridiculous"? Is there any documented evidence showing that Priority One contested the charge in 2013, 2014 or at the start of 2015? Evidently, Priority One did not find the charge ridiculous, otherwise why did they pay $100,000 of the total amount due to Turner, Warren, Hwang and Conrad. 

Attorney Steele admits in his filing that Priority One was ignorant of the alleged violations committed by Turner, Warren, Hwang and Conrad until on or about April 24, 2015 when they received a report provided to them by CUMIS' "expert" whose investigation showed that the report produced from the external auditor's February 2013, investigation was so poorly written that it had to be rewritten by attorneys so it could be submitted to CUMIS along with Priority One's claim for $1 million.

 What seems odd is that during the 26 months which transpired between February 2013, the month when Turner, Warren, Hwang and Conrad conducted its audit; and April 24, 2015, the date when the credit union received CUMIS' report documenting the allegations against the external auditor, that Priority One's President, its Board of Directors, and its Supervisory Committee never realized that Turner, Warren, Hwang, and Conrad allegedly provided inaccurate end-of-year reports for 2008, 2009, 2010, 2011, 2012, and for the report provided in 2013. So when is Priority One held responsible to ensuring that information they receive is verified to be correct? And why didn't Priority One ever realize that any of the numerous reports provided to them by their external auditor contained erroneous information? 

And why did Priority One refuse to pay the outstanding balance due to Turner, Warren, Hwang, and Conrad in 2013, 2014, and part of 2015 if they didn't know about the external auditor's alleged violations until April 24, 2015? Could it be that Priority One refused to pay the bill because they are unable to?  In 2010, now former CFO, Saed Raad, instructed his staff in the Accounting Department not to pay vendor bills for at least 3 to 4 weeks after these are received.  Priority One is a credit union whose coffers have been heavily taxed by expenditures that are unrelated to business including more than $500,000 spent on legal fees during the years of 2010 through 2014. 

Mr. Steele places entire blame on the external auditor because of their failure to perform audits compliant to its contracted obligations but the fact remains that no one at the credit union- not the self-proclaimed financially savvy President, the Board of Directors or the Supervisory Committee ever took note that any of the end-of-year reports provided to them contained egregious violations of the agreements ratified between the external auditor and the credit union. So when is Priority One deemed responsible for the years of failures committed by its President and two governing bodies? 






Attorney Steele's argument is that Turner, Warren, Hwang and Conrad's did not perform annual audits commensurate with the terms of the agreements entered into with the credit union. He alleges that as a result of this, Priority One was forced to rehire Turner, Warren, Hwang, and Conrad who conducted an investigation of the Los Angeles branch's records in March of 2013. 

Attorney Steele's key points in his conclusion are:
  • Turner, Warren, Hwang and Conrad failed to adhere to the terms of their agreement entered into with Priority One Credit Union
  • He accuses Turner, Warren, Hwang and Conrad of filing a motion whose focus is the date when the embezzlement took place
  • Turner, Warren, Hwang and Conrad allegedly breached their agreements and provided inaccurate reports to the credit union in the years 2008, 2009, 2010, 2011, 2012 and 2013. 
  • Turner, Warren, Hwang and Conrad "actively concealed its breach of contract"; and
  • As a result of their alleged concealment, Priority One could not have known prior to April 2015, that Turner, Warren, Hwang and Conrad had violated its agreements with the credit union
Attorney Steele will have to prove that Turner, Warren, Hwang and Conrad purposely concealed the breaches they are how accused of committing. He is accusing the external auditor of knowingly if not intentionally, violating its agreements entered into with Priority One in 2008, 2009, 2010, 2011, 2012, and 2013. Are we then to believe that Turner, Warren, Hwang and Conrad, a company with an impressive portfolio of credit union industry clients. would single out Priority One, a credit union with a horrendous public reputation and led by a President whose horrendous performance is marred by numerous failures, abuses of authority, egregious violations of state and federal laws, and last but not least, a well documented record of numerous security breaches of which the $1 million theft is but one?

The fact is, under Charles R. Wiggington, Sr., internal thievery on a massive scale has become common place at Priority One Credit Union. So how did one AVP enter the Los Angeles branch vault, unaccompanied and in defiance to double-custody and in violation of the credit union’s security protocols and over a 24-month period, steal more than $1 million? It’s mind-boggling.

CONCLUSION

There isn't any evidence presented by either side that might allow us to guess who could potentially win their lawsuit. CUMIS hopes the court will find Turner, Warren, Hwang, and Conrad guilty of violating it's agreements with Priority One and of conducting audits that proved subpar and out of compliance with standard auditing procedures. They are also requesting the court order Turner, Warren, Hwang and Conrad to pay $1 million plus any other fees the court deems appropriate. 

What CUMIS and the credit union are not alluding to in their complaints is that during the thefts occurred, Priority One had a President, a Board of Directors, a Supervisory Committee, an Accounting Department and three different offices who oversaw operations, yet inexplicably all failed to realize cash was being taken from the vault of the Los Angeles branch.

CUMIS and Priority One make reference to Lynnette Fortson, the former AVP accused of embezzling $1 million in cash but we've yet to discover how she was able to enter a branch vault by herself and in defiance of credit union banking policy which stipulates double-custody when entering the vault; and how she was able to walk out with $1 million in cash over an approximate 24-month period. The fact she succeeded in perpetrating embezzlement on such a grand scale points to failure on the part of the credit union and its alleged security protocols designed to protect credit union assets. No matter how much CUMIS may wish to hold Turner, Warren, Hwang and Conrad accountable for the theft of $1 million, the fact is, the external auditor had no involvement in the physical removal of cash.

Priority One should be held accountable for failing to detect any of the thefts. Based on their attorney's disclosures, Priority One relied solely on a single year-end report provided by Turner, Warren, Hwang and Conrad to assess the effectiveness of its own security. Apparently, Priority One never verified the evidence used by the external auditor to arrive at the conclusions contained in their reports for the years 2008 through 2012. 

Over the past 8-years, the credit union's Supervisory Committee has remained unusually quiet though each year, Supervisory Committee Chair, Cornelia Simmons signs a mundane address written by Rodger Smock and published in the annual report, which repetitiously assures readers that the committee has determined that Priority One is in compliance to all applicable laws and that in her committee's opinion, all is well. In retrospect, since 2009 Ms. Simmons' statements have been proven to be untrue. Ms. Simmons' 2009 address assured readers that the credit union was operating safely yet in that same year, a receptionist absconded with more than $60,000 from the Los Angeles branch. The credit union's current defense indicates that the Supervisory Committee is trying to divert attention away from themselves and placing the entire records of thefts during the period of 2010 through 2012, on Turner, Warren, Hwang and Conrad.

In another matter, in 2014 President Wiggington ordered omission of all references to legal expenses from the credit union's monthly income statement. In 2015, he's ordered that the credit union's 2014 Annual Report not be distributed. His actions suggest he is trying to hide those records that serve to prove Priority One's actual performance versus the tales he loves to tell that allude to non-existent success. Periodically, officers like Robert West try and deter attention away from the credit union's awful public reputation, legal problems, and chronic internal issues. Mr. West's efforts always fail to allay attention from the well-documented fact that since Charles R. Wiggington, Sr. became President, business remains in decline and that lawsuits have been filed each year since 2010, against the once respected credit union. 

In the meantime, we will have to await the results of a trial which will hopefully and finally bring to light the gross incompetence of Priority One's worst and most embarrassing President. For those who are interested, the trial between CUMIS and Turner, Warren, Hwang, and Conrad; and if approved, Priority One's cross-complaint, is slated to take place at Superior Court in Los Angeles on August 24, 2015.  







Wednesday, June 25, 2014

DISPELLING FANTASIES



On Wednesday, May 28, 2014, Priority One One Credit Union conducted its 2014 Annual Meeting though just a few hours before its start, employees of the credit union's three remaining branches convened at Carrow's Restaurant in South Pasadena, California to participate in an all-staff meeting ordered by President Charles R. Wiggington, Sr. 

On January 1, 2007, the Credit Union employed in excess of 150 employees but during the May 28th gathering. the staff numbered less than 60. Also noteworthy, is that employees paid for their own lunches and after eating, were forced to listen to President Charles R. Wiggington, Sr. ramble on about alleged improved business and a promising future for the supposedly rebounding credit union.

Of course, the President's spiel was nothing more than another outpouring of Wiggington-styled propaganda intended to lure employees into ignoring the massive and lumbering brontosaurus in the room which is a well documented record of chronic failures all orchestrated by President Wiggington and all sanctioned by what may be the most deplorable Board of Directors in the credit union industry. In addition to his well-documented botches is the all too conspicuous closure of 6 branches since October 2010, reducing Priority One from 9 offices to 3. Another telling indicator that the credit union may not be performing as well as the President wanted employees to think is that Priority One could not afford to pay lunches for employees attending the meeting. 

At 6 p.m., the credit union conducted its Annual Meeting which this year was awkwardly dubbed, "Maintaining Forward Progress" (versus Backward Progress).  During the meeting, the President reiterated that Priority One performed well in 2013, however, his over-optimism is sharply undercut by the credit union's own Monthly Income/Balance Sheets and quarterly Financial Performance Reports ("FPR") filed with the NCUA.gov.  A review of the reports reveals a credit union that is unable to generate sufficient new business needed to offset overhead, build desperately needed reserves, and augment capital. All of the failures the credit union continues to experience are born out of President Wiggington's inability to implement effective marketing, build relations within the communities the credit union is supposed to serve,  failure to create cutting edge advertising that succeeds in attracting member interest, and his inability to resolve the credit union's burgeoning member service issues. The President's spin on the credit union's actual performance was another clumsy and all too transparent poorly honed plan designed to dupe listeners into believing his warped version of reality.  

During the meeting, the President went to great lengths to avoid referring to the credit union's present inability to service all of the Santa Clarita and most of the San Fernando valleys and all of Riverside County along with avoiding all reference to the closure of 6 branches since October 2010. Its what he didn't say that most attests to the credit union real performance.  

DOWNSIZNG

In March, President Wiggington disclosed that reason for the closures of the Airport and the Santa Clarita branches in December 2013 and January 2014, respectively, was simply that neither branch was performing well.  

The Airport branch in 2010 and the Santa Clarita branch* opened in February 2012. In the months before opening the Santa Clarita branch, the President declared that the people living and working in the Santa Clarita Valley would be both "grateful" and "excited" that the credit union was reopening a branch in that region. In 2010, the President ordered closure of the successful Valencia branch because at the time, the credit union could no longer afford to pay the more than $5300 monthly cost to lease the space. 

In 2012, then Santa Clarita Post Master, Ralph Tapia, ordered construction of a structure just outside the gates of the Santa Clarita Mail Processing Center located at 28635 Braxton Avenue in Valencia, California. Mr. Tapia is a loyal member of the credit union and wanted to express his gratitude towards the once well-respected organization. As the new Santa Clarita branch neared completion, President Wiggington began declaring that people would flock to the new branch wanting to becoming members of the credit union. His statements were based on nothing more than conjecture dredged from his fantastical imagination which chronically circumvents logic and evidence to support his far-fetched beliefs. In fact, In November 2011, we stated that the branch would fail, primarily because of its inconvenient location outside of downtown Valencia and because in our opinion, the President would fail to promote the site just as he failed to promote the Redlands, Riverside, Valencia, and Burbank branches, all of which closed during the period of 2010 through 2012. 

The President's own words revealed that from his skewed perspective, people would "flock" to the new branch without him having to market the location. His failure to develop strategies to market the Santa Clarita branch serves to affirm that Charles R. Wiggington, Sr.'s inspirations are bombastic at base and grounded in fantasy. He sincerely believes that Priority One has something to offer without have to make any effort to reach out to the communities it serves which explains why he was forced to close the Redlands and Valencia branches in 2010; the Riverside branch in 2011; the Burbank branch in 2012; the Airport branch in 2013; and the Santa Clarita branch in 2014. In the end, his beliefs are spurious and both self indulgent and self deluded. 

*In 2013, the new Post Master in Santa Clarita informed the credit union that he was going to increase the amount of their lease. The decision by the Post Master prompted EVP, Rodger Smock, to exclaim, "What are they (the postal service) doing to us!:




Over the years, the two most frequently asked questions we've received are, "Why has President Charles R. Wiggington, Sr. not been terminated?" and "Why hasn't the Board of Directors been removed?" 

To remove the President, the entire Board or some of the Directors of the Board requires filing of a complaint by member-owners. Without member-owners filing a complaint with the state of California, both the President and Board remain securely in place. We must add that if a non-member files a complaint and submits evidence to the Department of Financial Institutions ("DFI") proving the credit union has violated state and federal law, the DFI will not open an investigation because the complaint must be filed by a member-owner. Evidence- even compelling evidence is in itself, insufficient to launch an investigation. Of course, this brings into conflict what the state mandates under law and what is unethical and moral. However, state mandates override the principles of ethics and morals since unethical acts are not synonymous with illegal acts. 

Of course, the validity of those things said by the President and Board over the years, assuring members and employees that things are just grand at the credit union requires that we believe them at face value. Unfortunately for the President and Board, in 2014 neither possesses a shred of credibility. Their addresses published in the annual reports are laced with distortions of the truth including exaggerations, and always ignoring the fact that the credit union's asset value has declined by millions of dollars since January 2007, the date which Charles R. Wiggington, Sr. began his reign of terror. The fact the credit union has terminated more than 50% of its employees since January 2007 is another indicator that things are not going well for the credit union. Couple this with 4 lawsuits filed by former employees since August 2010 along with the closure of 6 branches since October 2010, and all indicators point to decline, though President Wiggington and Board Chair, Diedra Harris-Brooks, would like employees and members to believe that the credit union's business is increasing and its profits, amassing. Any doubt to the credit union's decline can be easily dispelled by reviewing their Monthly Income Statements/Balance Sheets or their quarterly reports published by the National Credit Union Association at http://www.ncua.gov.  The financials contained in their financial statements conspicuously conflicts with the President's and Board Chair's bloated claims of success.

We recently revisited Bankrate.com and discovered that the credit union’s financial standing was downgraded from 4 stars at the end of 2012, to 3 stars at the end of 2013.  The reason for the downgrade is due to a drop in capital. President Wiggington has since 2009, avoided closure of the credit union by introducing often drastic cut-backs in spending. In February 2012, President Wiggington lied to employees when he explained that capital represents earnings from profit. At the time, he distorted the truth because the credit union was preparing, unbeknownst to employees, to close the Burbank branch and begin what would be approximately 8 months during which many employees were terminated for allegedly failing to meet their assigned monthly sales quotas. 

The 2013 assessment by Bankrate.com states that Net Capital has declined. Additionally, since March 2013, the credit union has been reporting negative loan loss allowance which suggests their delinquencies have declined thus reducing the amount of reserve set side to cover projected/estimated losses from delinquent loans. Normally, this would be wonderful news but based solely on  the President's manipulation of accounting practices, the report by the credit union cannot be believed without tangible evidence. If the President is lying again and underestimating the amount of projected loan losses or if he is merely being overly optimistic, t then the credit union could potentially create new and additional problems for itself. 

Since 2010, the President's weapon of choice to counter the sluggish development of new business has been cutting back expenditures, however, 

Branch closures are unfortunate, though in the case of Priority One, necessary. However, closing branches was intended as a temporary means by which to reduce expenses and develop new strategies needed to produce income. The credit union's current inability to acquire sufficient levels of new business is failing to: 
  • Generate profit
  • Create reserves
  • Increase capital 
In 2010, auditors advised the President he must reduce expenses immediately and substantially to avoid further decline leading to possible closure. At the time, then COO, Beatrice Walker, and CFO, Saeid Raad, decided that the most immediate and effective means by which to reduce expenses was to close the Redlands and Valencia branches though at the time, Ms. Walker vindictively targeted the Valencia branch because she was at odds with its Manager. The closures should have represented a single, desperate effort to save the credit union and provide an opportunity to the President and his executive staff to create and implement strategies that would more effectively promote the credit union's products, services, and name. At no time, were branch closures intended to become a "usual and customary" part of how the credit union conducts fiscal business. Unfortunately, due to President Wiggington's immense limitations, cut-backs have become an addictive way of life for the credit union and its survival. 

According to Bankrate.com, the credit union’s business is not profitable. Priority One’s Return on Average Assets is according to Bankrate.com, “Substantially below Average.”

Bankrate.com also determined that the credit union’s outgoing expenses aka “overhead”, is “Significantly Higher than average.” This indicates that Priority One is not generating sufficient new business needed to build capital and produce adequate loss reserves.

According to Bankrate.com, their assessment about Priority One’s earnings is based on their review of Priority One’s last four quarters of income and expenditures meaning quite simply, that it includes all of 2013. Bankrate. com also concluded that a review of the four quarters ending December 31 2013, revealed Priority One has a “substantially below average return on average assets” and “A significantly higher than average overhead ratio is in evidence.”

Priority One’s inability to generate sufficient new business is undermining their ability to pay their expenses, generate a profit and create sufficient monetary reserves to sustain its operation.

Bankrate.com also discloses that the 3 star rating indicates a “GENERALLY satisfactory financial condition.” In analyzing Priority One’s capital, Bankrate.com “that this credit union demonstrates well below standard capitalization. Notwithstanding any of the information contained within this section, we believe, based on our analysis, that the institution should consider plans for enhancing reported capitalization.”

So how does one develop plans to enhance reported capitalization when they have no idea of how to create effective marketing strategies, how to build relationships with the people living and residing in the credit union’s vast but not maintained territories. The fact is, the problems which have contributed to Priority One’s decline have been ongoing for the past 7 years and sadly, President Wiggington just doesn’t have what it takes to lead the credit union out of the mire he created. For the President, creating effective business producing plans is just impossible. 


Is Ignorance Truly Bliss?

We received the following account from a member who called the credit union to request a copy of the Annual Report. 

Friday, June 6, 2014

"I called the credit union earlier today and asked a woman who picked up the phone to send me an annual report.

She asked "A what?" 

I repeated, "An annual report."

She asked, "What do you need it for?" 

I explained that as a member, I am entitled to a copy of the annual report. She responded, 
"Please hold." 

She returned and asked again, "What do you want?" 

I asked, "Do you know what an annual report is?"

She responded slowly, "No." 

I told her I would call back and speak to someone else. She said, "Okay."

Clearly, unlike the many knowledgeable and competent employees the President drove out of the credit union over the years, new employees are either not being trained and purposely kept ignorant or the caliber of employees hired by the credit union reflects the level of incompetence saturating the credit union since Charles R. Wiggington, Sr. was appointed President of what once was a larger and growing credit union. Does Charles R. Wiggington, Sr. truly believe ignorance is bliss or an attractive quality? 

We've recently learned that the President has instructed managers not to release information about the credit union's financials. This reminds us of his 2010 directive, prohibiting managers from releasing the credit union's monthly income statements despite the fact that all members, under state law, can request and receive a copy of the statement. His efforts to try and suppress the release of the credit union's financial information clearly suggests the President has much to hide. 

MAINTAINING FORWARD PROGRESS

This year's Annual Meeting was dubbed, "Maintaining Forward Progress" (versus Maintaining Backward Progress). The event which has over the past 7 years turned into a high school theatrical production, served as a platform during which President Wiggington and Board Chair, Diedra Harris-Brooks, disingenuously presented a promising picture of the shrinking credit union's future. If one chose to ignore their poorly scripted and unconvincing speeches, then Priority One is indeed a clean, mean running machining and not a sputtering operation reliant on expense reductions as a means by which to remain in business. 

to spend 30-minutes raising yet another sham portraying the sputtering credit union as a clean, mean running machine, a claim quickly and immediately dispelled by Priority One's financial reports which paint a picture of a credit union struggling to sell its products and exerting tremendous effort to pay its overhead. 

For the President and Board Chair, the Annual Meeting is an opportunity to misrepresent the credit union's real performance. Noticeably not mentioned were the closure of the Airport branch in December of last year and closure of the Santa Clarita branch in January of this year. Also not mentioned is why the credit union has closed 6 of it 9 branches since October 2010. The two officers also avoided all reference why the credit unions asset size has decreased by $7 million over the past 7 years.  


REDEFINING STALE



Usually, things reported as news have never been reported previously. Clearly, Priority One Credit Union defines what is news, differently than does everyone else.

On their website, under “Priority One News & Updates” the credit union allegedly publishes notices of current and upcoming events. However, a review of the page discloses the page is being neglected and continues to reference information that is more than 2 years old. This failure by the credit union creates an impression of mismanagement of their own resources and reminds us of the ship shod manner President Wiggington chooses to manage (or mismanage) the credit union’s many differing facets. So doesn’t the credit union have a person or person to maintain its website?

Its incredulous that President Wiggington or Executive Vice President, Rodger Smock; Vice President of Operations, Yvonne Boutte; Vice President of Lending, Patricia Loiacano; Business Development Representative, Joseph Garcia; Director of Employee Services, Robert West; or Manager of Employee Services, Esmeralda Sandoval, have all simultaneously thought it prudent to continue referencing the Airport and Santa Clarita branches on their list of branch locations. Though the two, no longer existent branches, each reference they are closed, they continue to appear on the list of active offices. We can see where members and prospective members might not realize those offices are permanently closed. The credit union annotates information about the closures in red font and also reference the early closure of the three remaining offices on Wednesday, May 28, 2014, in red font. We assume the continued inclusion of the two closed offices on their list of active offices is intended to create the impression that Priority One has 5 branches. Isn’t it about time President Wiggington donned his big boy pants and accept that the credit union has lost 6 branches under his tutelage and that maintaining an inaccurate list of offices is nothing more than another Wiggington-styled deceptive ploy?










Inexplicably, the credit union’s last published newsletter was that for Winter 2013. So what could have happened to their quarterly publication?

The credit union’s newsletters plummeted in popularity after 2007. For years, the credit union published a monthly newsletter but in 2010, the then Marketing Specialist gathered evidence that members were not reading or interested in the monthly letters. At the time, COO, Beatrice Walker, ordered cessation of the newsletter which irked Executive Vice President, Rodger Smock, who at the time, was the newsletter’s caretaker. Resentful, Mr. Smock launched a personal vendetta against the then Marketing Specialist and falsely informed the COO that the specialist was leaking confidential he had no access to, on to the Internet.

With the elimination of the monthly newsletter, the EVP was left with managing publication of the quarterly newsletter. In 2010, the credit union determined that mailing of the newsletter was too expensive and if eliminated could help reduce spending. The credit union issued letters to all members, asking if they could inform the credit union if they would like to continue receiving the quarterly newsletter or if they would prefer downloading it directly from Priority One’s website. Few members responded to the request, leading the credit union that members were not interested in the newsletters.

Oddly, the credit union renamed the Winter publication to First Connections (yawn) but has never published another newsletter since then. The letters have been chronically dull for years, with the front panel always containing a mundane and dull address allegedly written by the President. On the backside, scant advertisements are shown, none possessing any drawing power. 

In what is apparently his final “President’s Message….,“ Charles R. Wiggington, Sr. begins by stating “The news seemed to be full of fraud and theft stories throughout 2012.” Certainly not a compelling or editorial masterpiece, the President’s message were intended to help members but unfortunately continually smacked of the tedious and stale.

Some men possess the ability to draw others to themselves. Others possess the gift to teach and imbue others with qualities that will enhance their life. Charles R. Wiggington, Sr. causes things he touches to wither.



FACADES

Officers at Priority One Credit Union all seem to suffer from the same insatiable need to exaggerate their online records. We certainly don't comprehend why they are driven to embellish references about themselves and must conclude that their tendencies towards dishonesty are so embedded in their behaviors that they don't possess the ability or desire to change.

Shown above is an online record of Board Chair, Diedra Harris-Brooks though all too conspicuously, the reference omits her complete last name. In 2012, we disclosed that Mrs. Harris-Brooks uses variations of her last name on the Internet. These are:
  • Diedra Harris-Brooks
  • Diedra Harris
  • Diedra Brooks
  • Diedra E. Harris
  • Diedra E. Brooks
  • Diedra E. Harris-Brooks
We not only find the variations unusual but they appear suspicious and suggest the Board Chair has more than a little too hide. Otherwise, why use so many variations of her last name? 

In the above-referenced record, is a list of Mrs. Harris-Brooks professional associations at the credit union. The problem with the record is that contains old references to employees who were terminated as a result of the President and Board Chair's plots. As shown above, the names of former employees, are:. 
  • Tsiu Tang, IT Supervisor
  • Beatrice (“Bea”) Walker, COO
  • Lynette Fortson, AVP
  • David Davidson
  • Kimberly Burke, Assistant Branch Manager
  • Manny Gaitmaitan, CFO
Tsui Tang, IT Supervisor

The first, Tsui Tang, succumbed to a treacherous plot implemented by then COO, Beatrice Walker. Mrs. Walker maintained an open resentment towards Mr. Tang because quite frankly, he was aware of many acts she perpetrated which violated credit union policies. She replaced him by hiring her friend, Randy McBride, who became Mr. Tang’s supervisor and later, at the request of Ms. Walker, terminated Mr. Tang.

Beatrice "Bea" Walker, COO

The treacherous and infamous Ms. Walker was terminated in July 2011 by her one-time friend and business associate, Charles R. Wiggington, Sr. The reasons for her ouster were insubordination and her alleged failure to satisfactorily fulfill her assigned duties.
Beatrice Walker was terminated in July 2011, allegedly for failing to fulfill her assigned responsibilities and insubordination to the President and Board. However, preceding her ouster, Ms. Walker made a racist statement about Mexican employees of the credit union, allegedly sexually harassed a female Branch Manager, and disparaged the intelligence of the Board’s Directors. 

Lynette Fortson, AVP, Los Angeles & Airport Branches

Lynnette Fortson was terminated in February 2013 following an audit of the Los Angeles branch’s records which disclosed money had been embezzled from that location.

David Davidson, Board Director

David Davidson, one of the few White Board Directors serving Priority One after Charles R. Wiggington, Sr., became a casualty of a plot concocted by Board Chair, Diedra Harris-Brooks, and President Charles R. Wiggington, Sr. The two wanted him off the Board because he helped expose that one of the President's confidants and AVP, had kited- a federal offense. The two offered the Director a job at the credit union as their first Financial Planner. He accepted the position, forcing him to resign from the Board. Two months later, the President treacherously terminated him. 

Kimberly Burke, Assistant Branch Manager
  
Kimberly Burke left the credit union in 2008. Prior to her departure, was sexually harassed by President Wiggington.

Manny Gaitmaitan, CFO
  
Manuel Gaitmaitan was a former CFO who resigned in December 2009 after President Wiggington and COO, Beatrice Walker, informed Mrs. Harris-Brooks that he was uncooperative and unwilling to alter account reporting to denote profits were none existed. Mr. Gaitmaitan was ostracized by the President, the COO, and EVP, Rodger Smock. Mr. Gaitmaitan would later disclose that he was forced to resign.

Mrs. Harris-Brooks online profile is evidently proliferated with misinformation that she has either intentionally or unintentionally allowed to remain in one of her public profiles. The fact that the Board Chair of the credit union lacks the motivation to ensure the removal of misinformation, should be deemed disturbing and is a reflection of her negligent attitude while serving as Board Chair. Her inaccurate record also mirrors the credit union's own negligence to maintain accurate information about themselves on the Internet.  


FACT, FICTION OR EXAGGERATION

We recently revisited the credit union's website where we located the following paragraphs describing the benefits offered by the credit union to its members. 

We couldn’t locate evidence proving that “most Fortune 500 companies" consider credit union membership an important benefit to their employees. We of course invite either President Wiggington or Executive Vice President, Rodger Smock, to submit whatever proof they are in possession of that makes this statement true. 
Paragraphs 4 and 5

Lastly, the credit union is not a $163 million credit union. It’s current asset size is less than $155 million a loss of over $17 million since January 1, 2007. 

As we proved in 2012, the credit union was rated a four-stars by Bauer Financial and under President Wiggington, has NEVER has received a 5-star rating. Despite their 4-star rating, President Wiggington ordered the always docile, Executive Vice President, Rodger Smock, to alter the credit union’s actual rating and increase it from 4 to 5 stars.

In 2010, the credit union received its first complaint declaring that a lawsuit had been filed by a former employee. In 2011, the credit union received a 2nd notice advising the credit union was being sued by yet another former employee. In 2012, the credit union received two additional complaints that it was being sued by two other, former employees. 


In response, the credit union hired an attorney to weave defenses that might help the credit union escape accountability against a list of allegations that it had violated state and federal laws and credit union policy. During depositions conducted in 3 of 4 lawsuits, credit union attorney, Paul F. Schimley, of Richardson-Harmon-Ober, aggressively asked questions about who was and is, writing this blog.  The attorney who was being paid handsomely by the credit union hoped to create a defense the impugned witnesses and plaintiffs through raising a facade that would hid the egregious acts allegedly committed by the President and his staff. All four lawsuits implicated President Wiggington; former COO, Beatrice Walker; and EVP, Rodger Smock. 


Many of the plots orchestrated by the President against employees were crafted by both him and former COO, Beatrice Walker. Ms. Walker, as we've often described, proved to be plutonium to the credit union as a business and employer. On the surface, Ms. Walker was hired to create new streams of business for a company whose performance was beginning to falter. However, within days after being hired, the President divulged that she had been hired to also reduce expenses by identifying positions that were unnecessary to the credit union. He also revealed that she had been hired to drive out enemy employees who were seeking to overthrow the President. Clearly, his imagination has no limits. Though Ms. Walker was hired by the President who told employees he never met her prior to June 1, 2009, the date she was hired. Ms. Walker would later concur, alleging she obtained the position of COO after answering an ad, contacting the credit union, interviewing with the Board, and then being offered the position of COO. Of course their story proved to be a concoction and it turned out Ms. Walker knew the President long before she had been hired, having met him years before while employed by Toyota Federal Credit Union located in Torrance, California. Six months before being hired, the President and Ms. Walker were seen leaving Applebee’s in Alhambra, California.  The only reason the two chose to lie is because she was not merely hired to be a COO and as time quickly proved, she was hired as the President’s personal hatchet-person to target and terminate employees the two imagined were out to undermine their authority.

Priority One does not possess a portfolio containing a “vast array of products and services. Under President Wiggington, there is no concept of what convenience means as attested to by their present scarcity of branch locations in the vast territory they possess.

Finally, a subject of many complaints is the credit union’s impersonal treatment of members and their failure to respond quickly or competently to the needs and requests from members. 





The crux of this blog is inarguably, Priority One Credit Union's perpetually dull President, Charles R. Wiggington, Sr. Since 2009., we've often reported upon many of the destructive decisions made by glib President. One of the many issues we've reported on, pertains to the ham-fisted President's horrendous inability to select qualified candidates to service in an executive capacity. One decision by the President which would tax the credit union's infrastructure heavily and injure employee morale was the President's 2009 decision to hire Beatrice ("Bea") Walker to serve as the credit union's first COO and who was banished from the credit union in July 2011 for insubordination, failing to fulfill her assigned responsibilities and because she had made comments disparaging the Board's intelligence. 

Approximately three weeks after terminating Ms. Walker, the President hired Cindy Garvin to be the new Director of Lending. So bolled over was Charles R. Wiggington, Sr. by her exemplary performance that 4 months after hiring her, the President promoted Ms. Garvin to the position of Chief Lending Officer ("CLO"). However, something changed in how the President viewed Ms. Garvin and on 12/28/12, she was terminated for failing to satisfy her assigned responsibilities though her departure came at the heels of criticisms she verbalized about the President.  

Over the years, we’ve reported about President Wiggington’s apparent inability to make sound, educated decisions that at one time, could have benefited the credit union. In 2009 through the end of 2010, we were the target of numerous online slurs, criticisms and even received emails accusing us of lying, of omitting facts and of portraying President Charles R. Wiggington, Sr. as a horrendous personality and ham-fisted President.

As with all things related to Charles R. Wiggington’s decisions, the plot never progressed as planned. Ms. Walker soon began gossiping about the President’s unprofessional demeanor, complained about his loud boasting hours spent each day on personal telephone calls. She described has as “uncouth”, “brash”, and even embarrassing. Though she initially ingratiated herself to the Board Chair, by early 2011 she began complaining about the lack of education possessed by the Directors and about their ignorance of financials. She also chose to defy the Board’s directive that she obtain approval for all campaigns, promotions, and projects from either the President or EVP, Rodger Smock. She complained that she was being forced to obtain permission from two men she deemed wholly incompetent and in her words, “useless.” Her rebellion ended on July 13, 2011, when she was escorted to the employee entrance at the main branch in South Pasadena and bid adieu. A few days later, her personal possessions left behind in her office were packed and shipped to her home in Santa Clarita. 

Here is an email we received last year from a former colleague of Ms. Walker, while employed at Universal City Studios Credit Union. The account was sent to us after we published that Ms. Walker was named in a lawsuit alleging she retaliated, harassed and sexually harassed a former Branch Manager. As you read the account, remember that Ms. Walker arrived at Priority One Credit Union via her friend, Charles R. Wiggington, Sr. The account provided to us in late 2012, describes some of the same reprehensible behaviors manifested by Ms. Walker while serving as COO at Priority One Credit Union.  Also noteworthy is the fact that Ms. Walker was in character a reflection of who Charles R. Wiggington, Sr. is as President and as a person. Her failures and character faults accommodate those of the President and most of his executive sector.

THE ACCOUNT

I don't know why she [Beatrice Walker] left [Universal City Studios Credit Union]. I left before she did. I was with my cu for 14 years. I had been considered for the job she ended up being hired for and when she was made aware of this. I became her target. I left December 2004. I believe she was gone by the Summer of 2005 from UCSCU (“Universal City Studios Credit Union”).

All the points made in the lawsuit I saw coming for me. The year I left I had the best review and highest pay increase but all she did was highlight and emphasize any of what she called my shortcomings. I did tell my CEO I was having some communication issues with Bea but at the time my cu had some other issues and at that time this seemed a minor issue and I should just deal with it with her. I did try to speak to her privately.

She of course stonewalled me and said there was no problem AT ALL. She would tell subordinates of what her issues were with me. Her passive and passive aggressive behavior was too much for me to take. I loved my cu and I felt I needed to move on anyways for better things.

I know she plays the victim very well and I'm pretty sure she was asked to leave.

In conclusion, I just knew I had to get away or she would could have ruined my reputation and minimized all the hard work I had done with my cu. She appeared unstable. The cu did hear me after I submitted my resignation threw a lot of money at me, offered a title of my choice and said I did not have to report to her if I stayed. I felt this would make things worse. It took a lot for me to get to that point. I had deep roots with my cu. :0).

They never made their loan goal until new management took over after her departure. That was enough for me. :0)

Inarguably, Bea Walker arrived at credit union loaded with personal baggage and apparently it never occurred to the equally dysfunctional President that her behavioral aberrations could prove adverse to a credit union already burdened by the President’s incompetence and his very special behaviors. Not only did she exacerbate the problems created by the President and Board, she proved an expensive liability who in the end sought to topple the President from his perch.



EMOTIONS VS PROFIT


A President Embedded in Regression

In January 2007, then newly appointed President, Charles R. Wiggington, Sr., conducted a meeting with Vice President of Operations, Rodger Smock; and then AVP of Operations, Aaron Cavazos, advising them that he was eliminating the seasonal loans implemented by his predecessor and which for years, had served as a reliable source of new business for the then thriving credit union. The President’s decision for eliminating the successful line of products was pure, unadulterated emotion.

At the time, the President stopped referring to the former President by name and began calling him “my predecessor.” He even went as far as removing his name plate and in the presence of some employees, throwing it in a trash can and exclaiming “We don’t need him anymore.” The behavior was deemed disturbing and as time would prove, characteristic of a very mode of troubling which would have far flung reverberations upon employee morale and the credit union’s financial stability.    

In late 2012, the President dredged up the Tax Loan implemented by his predecessor and the credit union’s once award winning Marketing Department. 7 years transpired before the chronically dull President realized that the seasonal loans create a guaranteed source of income and so he is now reintroducing a line of products he once expressed a profound disdain for.







Since 2007, the year when Charles R. Wiggington, Sr. was inspired to obliterate the credit union's once prize-winning Marketing Department, Priority One's ability to implement effective marketing and create promotions that generate large member interest, have sputtered and faltered. Despite his history of well-documented failures, the President moves forward, continuing what will surely be his legacy, of concocting ineffective and uninteresting offers. 

Earlier this month members received an incentive offer from the credit union, inviting them to spend $500.00 using their credit union issued check card so that they can receive $10.00. If they spend $750.00 the amount to be paid to members doubles to a whopping $20.00. The offer is intended motivate members into spending using their Priority One check cards, but does it work? 

While reading the credit union’s latest offer we thought we heard the wind blowing while a coyote howled somewhere far in the distance and tumble weed blew across the landscape. Obviously, the President doesn't possess the creativity needed to produce impacting promotions. We can't imagine members rushing out of their homes to spend $500 and $750 respectively so that they can receive what truly are insignificant returns. Maybe before launching a promotion, Charles R. Wiggington, Sr. should take the time to reread and reread and reread the credit union’s offer to ensure they possess the impact needed to achieve whatever goals is being targeted. 

Here is another example of the caliber of advertising being dispensed by credit union nowadays. The oddly positioned image, obtained from Priority One's Facebook page, was apparently taken using a cell phone. The language is juvenile at best and semantically incorrect. It is one thing to be cost-effective and quite another to appear frugal and cheap, a fact President Wiggington is evidently unaware of. 

"GIFT CARDS ARE THE EVERYDAY 
CHOICE FOR GIFTS EVERY DAY."

The credit union's advertisement promoting gift cards is awkwardly written and accompanied by a frugal-looking photograph of VISA gift cards neatly positioned in an inexpensive acrylic stand. The photograph appears to have been taken using a cellular camera though no effort was made to create a professional-looking and appealing image serving as yet another metaphor for the way Charles R. Wiggington, Sr. chooses to do business.   





SYSTEM DOWN......AGAIN


One morning in early 2013, the credit union received several calls from members complaining they were unable to access the credit union's website. The problem continued for several hours during which more and more calls were received, inundating phone lines and overwhelming staff. 

The problem was corrected by the end of the day but not before it was revealed the credit union had not paid its website provider.

In 2012, then CFO, Saeid Raad, informed the Accounting Department staff that President Wiggington issued a directive, ordering that invoices received from vendors, be held 3 to 4 weeks before being paid. The inability by Priority One to pay its bills promptly is rooted in its continuing inability to acquisition sufficient new business needed to generate income required to offset overhead a fact identified by Bankrate.com in their 2012 and 2013 financial assessments of the credit union. 

On Tuesday, June 3, 2014, at about 2 p.m., the credit union's website was again, inaccessible. We contacted the main branch 3 times and during each call, were told that there was no problem with the website, however, one proactive representative tried to access the webpage and confirmed that the site was indeed, down and inaccessible.


It's more than a little peculiar that no one at Priority One apparently monitors the website. In the years since 2010, when the credit union began closing down branches, the President increased focus on online home banking but online banking doesn't work if the website isn't accessible. 

During the May 28th, Annual Meeting, the President announced that all is well at the heavily troubled credit union though its apparent that Charles R. Wiggington, Sr. is sufficiently disorganized not to implement procedures needed to monitor the credit union's internal operation to ensure members receive service meeting their high standards and expectations. 



WASTING MONEY

We were sent to the following offer for life insurance mailed by the credit union during the week of June 2nd. The second paragraph of the letter states, "As a member, you are eligible to apply for up to $10,000...."  The problem with the credit union's letter is that the person the offer was sent to, is no longer a member of Priority One Credit Union. Apparently, Charles R. Wiggington, Sr. is incapable of comprehending that a person closing their credit union account(s) officially terminates their relationship with the credit union. Mailing the offer to non-members is another example of how Charles R. Wiggington, Sr. chooses to waste credit union monies. Since 2007, President Wiggington has exacted decisions that have financially diminished the once profitable credit union. His very public efforts, allegedly intended to taper and even bridle spending, are undermined by chronic undisciplined spending which in this case is attested to by unnecessary printing and fees spent on letters sent to non-members. 




CONCLUSION

When thinking about Priority One Credit Union, two words come to mind- neglect and cheap
Priority One Credit Union is broken and its survival heavily reliant upon expense reductions. Cutting expenses has transformed Priority One from successful and promising to the epitome of frugality. Despite the credit union's inability to generate large new amounts of business, Priority One continues to employ several overpaid and useless executives, almost all unnecessary to the operation and none who has contributed anything of substance to the deficient organization. Despite the obvious, the credit union's ignorant Board and in particular, its impulsive and inept Board Chair, Diedra Harris-Brooks, continue in their efforts to ensure Charles R. Wiggington, Sr. remains President and CEO.

As we've periodically done over the years, we extend an invitation to the entire derelict Board or unimpressive executives to provide a single shred of evidence proving that they've contributed to the betterment of the credit union and that in 2014, Priority One is a stronger more potent credit union than it was in the years prior to January 1, 2007- the day Charles R. Wiggington, Sr. began his appointment as President. Certainly, aged Executive Vice President, Rodger Smock, can take a moment to leave his office and explain how he's resolved the problems created by his friend and mentor, Charles R. Wiggington, Sr. Or possibly the arrogant, verbose and polarizing Vice President, Yvonne Boutte, can show how she's helped increase new business and membership and fostered the development of improved morale. 

Its a well-known fact that Priority One can longer service all of Riverside Country, most of the San Fernando Valley and all of the Santa Clarita Valley. In fact, the credit union apparently is unable to maintain its own website which is currently populated by stale information, incomplete pages and boring advertising.  

In his embarrassing 7 years as President, Charles R. Wiggington, Sr. has been more concerned with the trappings of his position than the well-being of the membership or employees of the credit union. 
Since he became President the credit union no longer provides free education to the communities it allegedly serves nor do its representatives attend credit union events and functions. Over the years, his greatest preoccupation was to fabricating facades intended to create the impression of success though his poorly constructed facades collapsed in the face of well-documented records proving failures and losses resultant from his inept business decisions. 

As of June 2014, Priority One continues to slip into a pool of obscurity and unless its tattered remains are salvaged through a merger with a better, stronger, and bigger credit union, it will eventually close its doors and  be all together forgotten. For all intents and purposes, Priority One is exactly where it should be. It would have been virtually impossible for the credit union to thrive under the inept leadership of Charles R. Wiggington, Sr. and his boat of bungling cronies. His deficiencies as President and CEO could only result in chaos and foster failure, stripping the once popular and prospering credit union of its dignity and potential for success as a business.


"No good tree bears bad fruit, nor does a bad tree bear good fruit."
Luke 6:43








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