Does Character Matter?, Part 1 of 2

Under a Microscope

You may have noticed that some of our earliest posts are being republished. The reason for this is because we've initiated a review to primarily correct formatting issues that occurred when we changed publishing platforms in 2013. At no fault of our own, some of the posts could not be simply updated and required being republished. 

Our review provided an opportunity to reread information we published over the past six years. One unexpected result is having re-discovered incidents that we'd forgotten about and realizing the accuracy of some of our earliest warnings about what might happen if Priority One Credit Union's President, Charles R. Wiggington, Sr.'s behaviors and abuses were not reined in. 

We've also re-discovered that from the date he became President on January 1, 2007, Charles R. Wiggington, Sr. chose to intentionally neglect security protocols designed to protect credit union and member assets. It is this disdain for protocol that we believe culminated in a series of vault thefts of cash at the Los Angeles branch during the years of 2010 through 2012, which totaled more than $1 million

Having spent days and many hours rereading our posts left us even more perplexed as to why the Board of Directors and actually, it's Board Chair, Diedra Harris-Brooks, has fought so fervently to ensure Charles R. Wiggington. Sr. remains President and CEO. What is also evident is that the theft of $1 million in cash would never have occurred had the Supervisory Committee under leadership of its Chair, Cornelia Simmons, chosen to carryout their assigned responsibilities.  The thefts were avoidable and though CUMIS, the insurance carrier, has filed a lawsuit accusing the external auditor, Turner, Warren, Hwang and Conrad of negligent auditing practices that they allege, caused the thefts to go unnoticed, the fact is, if Priority One Credit Union had ensured all security protocols were being performed, the thefts would have been discovered early on. 

What CUMIS and Priority One hope a court will believe is that Turner, Warren, Hwang and Conrad, who were contracted to perform annual audits, failed to discover that thefts were being perpetrated, allegedly, by a single AVP. What they hope to avoid is the responsibility the credit union had to ensure all security protocols were in place and being performed; and draw attention away from the fact that the Supervisory Committee, the Board of Directors, the President, two former COO's, the CFO, and the Accounting Department never noticed a discrepancy between the Los Angeles branch's vault records the Accounting Department's records. 

The credit union has remained unusually quiet about the AVP, who allegedly absconded with $1 million in cash. If security measures were being practiced, then how could one woman enter the vault each week over a 24-month period, and abscond with more than $1 million. We're certain other credit unions would like to know how this was done so that they can implement measures that would deter this from occurring at their organizations. 

THE ALLEGED THIEF

And what has happened with the case against Pearl Lynnette Fortson, the AVP, who allegedly and single-handedly perpetrated the theft of more than $1 million without being observed by any of the tellers, FSR's or receptionist assigned to the Los Angeles branch.

A search of the Superior Court's records show that her bankruptcy filings continues under review. We've yet to find anything indicated that she's being prosecuted or that she was ever arrested. CUMIS has clearly not demonstrated the level of aggressiveness shown against the external auditor, Turner, Warren, Hwang and Conrad who they hold responsible for the thefts despite the conspicuous fact that the external auditor was not involved in the perpetration of any of the thefts that occurred during the years of 2010 through 2012; nor was the external auditor responsible for ensuring security protocols were being maintained. At present, the former AVP is scheduled to attend a status conference regarding her bankruptcy filing. The conference will take place on January 28, 2016, at 8:30 a.m. in department 58 at the Superior Court of Los Angeles, California to 

EMBEZZLEMENT 

According to the credit union and CUMIS' statement to a reporter, the thefts were carefully camouflaged by Ms. Fortson who allegedly altered the vault's ledger. So does Priority One accept in faith the accuracy of everything that is entered into vault ledgers without conducting verification procedures? 

In reviewing past posts, we've rediscovered that during the May 2009 Annual Meeting, the President stated that he was reducing spending, "streamling", and "working smarter." His chronic failures and a series of large thefts occurring at the Los Angeles branch suggest that he knows nothing about "working smarter" and his alleged expense reductions have come at a cost to the workforce who continue to be subjected to a more than five-year wage freeze and who are rarely promoted while the President's so-called efforts are designed not to affect the salaries and benefits paid to credit union executives. Currently, the President continues to receive more than $150,000 per year plus annual bonuses. At Priority One Credit Union, the incompetent Board of Directors rewards incompetency and dishonesty and has gone out of its way to ensure that the man who was found guilty of sexual harassment in 2008, remains President and CEO.

PERSECUTION

Our recent review of past posts has rediscovered a large amount of information regarding past incidents occurring in the years since Charles R. Wiggington, Sr. was appointed President. Some of the incidents relate directly to Priority One Credit Union's security protocols and reveal that since January 1, 2007, President Wiggington has often refused to abide to credit union policies created to ensure the safety of assets and other incidents reveal the abuses perpetrated against employees who discovered that some of the credit union's officers had not adhered to required state and federal protocols and standards. 

The following account occurred at Priority One Credit Union's Van Nuys branch in 2007, the same year Charles R. Wiggington. Sr. began his appointment as President. 

The account consists of several incidents involving a new hired Branch Manager who was to oversee management of the Van Nuys branch. 

At the time the Branch Manager was hired, AVP, Rodger Smock, who is also the Director of Human Resources, issued fliers to all employees announcing the hiring of the new Branch Manager and descried him as a highly experienced and knowledgeable officer who would contribute to the success of the Van Nuys branch. 

Unfortunately, the highly competent manager would soon become a victim of President Wiggington's treacherous political system. What the following account reveals is that President Wiggington does not tolerate anyone who discovers that he and his staff have violated the credit union's own policies and state and federal laws laws. What the account also shows is that at Priority One Credit Union, dishonesty and incompetence are awarded and even protected as we witnessed in 2008, when evidence that the President sexually harassed a former employee, was squashed by the Board of Directors and the President's employment, retained. Here is the account: 

The Spider's Lair, Part 1, February 25, 2009

PUNISHING COMPETENCY

 Slander and Harassment 

In February 2007, Priority One Credit Union hired D. Centeno to replace former Van Nuys Branch Manager, Sylvia Perez, who had been promoted to Assistant Vice President ("AVP") and transferred to the Burbank branch. 

Director of Human Resources, AVP, Rodger Smock, produced and distributed fliers to all branches announcing the hiring of Mr. Centeno who according to Mr. Smock, possessed extensive banking experience and qualities which the credit union believed would contribute to increasing new business throughout the San Fernando Valley. Those who came to know Mr. Centeno described him as the consummate professional, possessing tremendous knowledge of banking procedures.

Under Priority One's procedures and policies, all new managers and before they can begin working at their assigned branch, must attend classes conducted at the main branch in South Pasadena. The classes orientate managers to the credit union's philosophy, mission, policies and procedures. Because of training, Mr. Centeno did not report to work at the Van Nuys branch for approximately 2 weeks. 

When Mr. Centeno did finally report to the Van Nuys branch, he almost immediately experienced difficulties with the branches two most senior employees, Neelam Verma, the Assistant Branch Manager, and Lillian Valladares, an FSR. 

The relationship between Mr. Centeno and the two employees grew strained when he discovered they were not following state mandated banking procedures and violating state law. What's more, they were leaving the credit union vulnerable to potential losses. 

Mr. Centeno also discovered that Mrs. Valladares was arbitrarily reversing NSF fees without first obtaining authorization from her supervisor. He also discovered that Mrs. Valladares had frequently failed to review mandated ATM and NSF reports. 

The two employees contacted Mrs. Perez who they had worked under for several years, and accused Mr. Centeno of being unduly difficult. Mrs. Perez grew irate because the issues Mr. Centeno discovered were all attributable to her. While serving as Branch Manager, she never taught her staff proper, state-mandated procedures. What's more,  she had allowed them to violate credit union banking policies. 

After Mrs. Valladares and Mrs. Verma complained to Mrs. Perez, the AVP drove to the Van Nuys office and during her meeting with Mr. Centeno, informed him that "the knowledge your brought from your former corporate environment will not be tolerated." 

Fueled by anger and we suspect, a fear that the credit union would discover that she failed to implement to provide her staff with the proper training and knowledge needed to carryout their assigned responsibilities. Mrs. Perez next launched a scathing attack against Mr. Centeno, fabricating accusations which disparaged his abilities and which AVP, Rodger Smock, allowed her to use in sealing Mr. Centeno's ouster. 

Mrs. Perez has established a well-earned reputation for having little self-control. She is known to be hyper, nervous, emotionally volatile, aggressive, impatient and highly vindictive. She also likes to declare that she is highly religious bit her alleged religiosity is not attested to by her behaviors. 

 BAMBOOZLED 

Despite the irrational response by Mrs. Valladares and Mrs. Verman, Mr. Centeno tried to resolve the differences with the two women but they refused, remaining uncooperative with their new supervisor. 

Mr. Centeno contacted Mrs. Perez and asked if she could schedule to meet with him, Mrs. Valladares, and Mrs. Verma in what he described as an effort to resolve the personnel problems he was experiencing. He also asked if the President and Mr. Smock could be present. Mrs. Perez told him she would contact the President and Mr. Smock and would call him back with a date and time when they could all meet. 

The following day, Mrs. Perez called Mr. Centeno and advised him that the meeting he requested would take place at the main branch in South Pasadena on June 18, 2007.

On June 18, 2007, Mr. Centeno arrived at the South  Pasadena branch and asked to go to the office of Rodger Smock. When he arrived in Mr. Smock's office, only Sylvia Perez was present. Mr. Centeno was informed that the President, Mrs. Valladares and Mrs. Verma were unable to attend. Mr. Centeno was informed by Mr. Smock that it had been decided by President Wiggington to end his employment immediately. He was handed a Warning Notice containing a list of allegations lodged against him by the credit union. This included an accusation that he failed to issue a performance evaluation in a timely manner for an employee named Lourdes. The notice, written by Mrs. Perez, stated that the evaluation was submitted 4 weeks late. On May 12, 2007, Mr. Perez allegedly ordered Mr. Centeno to produce a performance evaluation. The evaluation was completed on June 5, 2007, which is less than 4 weeks and thus not late. 

What's more, Mr. Centeno had been employed by the credit union for more than 90-days and under the credit union's procedures, he was to have received a performance evaluation no later than the 90th day of his employment. Obviously, Mrs. Perez was late and violated the same policy she was enforcing. What's more, Rodger Smock allowed Mrs. Perez to document allegations that were clearly untrue and failed to address Mrs. Perez's own violation. In a memorandum dated, January 8, 2008, issued by Vice President of Operations, Rodger Smock, and issued to "All Members of management and Staff", he stated: 

All performance reviews must be completed within a reasonable time frame following the end of the review period. Reasonable time frame is defined as 1-2 pay periods following the end of the review date. Completed is defined as performance review has been discussed, signed and original sent to Human Resources (copy should be given to respective employee).

Mr. Centeno did not violate the credit union's policy though Mrs. Perez clearly failed to complete her evaluation of Mr. Centeno in a timely manner. Furthermore, the credit union's own records prove that many managers issue performance evaluations long after the 4-week timeframe has passed.  Records show that often, evaluations are completed six to twelve months after they are due. 

Mrs. Perez's Warning Notice also accused Mr. Centeno of failing to respond in a timely manner to a complaint filed by a member who alleged her $200 deposit had never been credited to her checking account. 

The complaint was filed immediately after Mr. Centeno was hired and while he was in training in South Pasadena. He could not have been aware of the member's complaint. What's more, the complaint should have been responded to by either the Assistant Branch Manager, Neelam Verma, or AVP, Sylvia Perez. 

Mrs. Perez purposely alleged a violation of policy that Mr. Centeno never committed. What's more, Mr. Smock chose not to address the apparent distortions of facts presented by Mrs. Perez and suggesting that he was involved in a plot to terminate Mr. Centeno. 

This is not the first time the President and his cronies have conducted a sham meeting to persecute employees. The plot forged against Mr. Centeno is typical of President Wiggington's mode of administration which resorts to the use of unscrupulous and unethical tactics intended to disparage and wound employee reputations. 

President Wiggington has stripped away the dignity that once characterized the credit union and has transformed its former business environment into a soap opera saturated with intrigue and far flung backstabbing. 

MORE TROUBLE

Following Mr. Centeno's departure, an audit of the Van Nuys branch disclosed that Assistant Branch Manager, Neelam Verma approved five loans, all of which became delinquent and were referred to collections and some which were eventually, charged-off. The total amount of losses incurred from the bad loans approved by Mrs. Verma, approximated $45,000. 

Its important to remember that Mrs. Verma had been trained by AVP, Sylvia Perez, in the years while Mrs. Perez served as Branch Manager of the Van Nuys office. 

Mrs. Verma was assigned high loan limits by then Vice President of Operations, Charles R. Wiggington, Sr. It was Mr. Wiggington who never ordered training to Mrs. Verma so that she could understand the principles governing loan processing. Not only was she not trained to process loans, there was nothing in her experience or training that qualified her to serve as a Loan Officer.  The loans she approved were not properly screened to determine risk factors for each loan applicant. Furthermore, Mrs. Verma failed to perform federally-mandated processes as required under the Patriot Act.

When the problems with the loans approved by Mrs. Verma were discovered, President Wiggington and AVP, Aaron Cavazos, drove to the Van Nuys branch.

Though the mistake was Mrs. Verma's, the President found a scapegoat in a temporary employee named A. Gant. Mrs. Verma reviewed the loan applications and then ordered A. Gant to fund the loans. Because he was a temporary employee, his experience in loan funding was extremely limited. 

Nonetheless, President Wiggington informed A. Gant that he was being terminated for funding "bad loans." Mrs. Verma was stripped of her title but retained her employment without a reduction in pay. What is also peculiar is that A. Gant was not an employee of the credit union. He was employed by Stivers Staffing whose offices are located in Pasadena, California and temporarily assigned to Priority One Credit Union. Subsequently, he was not employed by Priority One, yet President Wiggington informed him that he was being terminated when the correct procedure would have been to inform Mr. Gant's actual employers- Stivers Staffing, that his assignment was being ended immediately.

A CHIP  OFF THE OLD BLOCK

THE FORMER BURBANK BRANCH MANAGER

Not surprisingly, Mrs. Verma wasn't the only officer of the credit union who despite little or no training in loan processing, was assigned exorbitant approval rights by Charles R. Wiggington, Sr. Like the incident involving Mrs. Verma, the following incident involves a series of approved loans which quickly became delinquent and were all eventually,charged-off.

In 2009, then Burbank Branch Manager, Linda Nisely, approved 4 automobile loans. Within a few months, the loans were deferred to Credit Resolutions. The department failed to procure the delinquent payments, forcing the credit union to charge-off the unpaid loans. 

The loans were issued to a man who visited the the Burbank branch and informed Mrs. Nisely that he was the owner of a San Fernando Valley dealership and wanted to obtain loan funding for some automobiles. Mrs. Nisely may have seen a wonderful opportunity to clinch a fast sale that would probably impress President Wiggington and so, she approved the loans. 

In the weeks that passed, neither Mrs. Nisely, the Loan Department and eventually, Credit Resolutions, experienced any success in reaching the member at the telephone numbers he provided when he funded the loans. 

Exasperated, Mrs. Nisely drove to the dealership but to her shock and dismay, discovered that the business address the member provided was to a business renting postal mail boxes. 

As in the case of Mrs. Verma, it was President Wiggington who authorized Mrs. Nisely loan limits. He never verified if she was qualified to make loan decisions but nonetheless, provided her with limits that should never have been given to her. His failure to train her, to test her abilities and knowledge and any other measures needed to ensure she was fully qualified to review and approve loan applications contributed to the incidence to even more losses to a credit union that since 2007, has lost millions of dollars in Net Income and lost more than 50% of its branches. 

On a side note, Mrs. Nisely was terminated in 2010, allegedly because the credit union was being forced to reduce spending. 

In October 2010, Mrs. Nisely filed a lawsuit against the credit union in which she alleged she had been subjected to age and race discrimination. She was one of the few White employees at Priority One. At the time, the credit union's attorneys of Richardson, Harman and Ober, informed their client that Mrs. Nisely's case had no merit. The attorneys and credit union began amassing a list of employees who would testify in court that Mrs. Nisely was a racist who hated Latins and who had been insubordinate and refused to participate in business development efforts. 

The case which allegedly had no merit was settled soon after Mrs. Nisely provided a copy of a letter written to Priority One's Human Resources Department by the former Valencia Branch Manager and described in detail that she had been victimized by then COO, Beatrice Walker, who created a hostile work environment, harassed and sexually harassed the Branch Manager and had even stalked her. 

What the letter proved is that the entire Board of Directors, President Wiggington, and AVP, Rodger Smock, and Human Resources "clerk", Esmeralda Sandoval, not only failed to investigate the Branch Manager's allegations but allowed a scathing campaign to ensue which eventually forced the Branch Manager's resignation. As a result of the letter, Mrs. Nisely's case was settled and a monetary settlement paid. Mrs. Nisely never called and thanked the Branch Manager for the letter which enabled her victory. 

To be continued........

. 

“We’ve never been sued.” Charles R. Wiggington, Sr., President, Part Two

SUED AGAIN

Over the past month, Priority One Credit Union became the recipient of yet another lawsuit filed by yet another former employee. It doesn't appear that the credit union will be extricating itself at anytime in the near future, from the perpetual cycles of lawsuits filed against it by former staff. This seems to drive a wedge into President Charles R. Wiggington, Sr.'s recent denials that the credit union has ever been sued by any former employee. Apparently, it has not only been sued, but it's been sued by three former employees. 

Aside from it's legal problems, the credit union is continuing to contend with the problem of lagging business and a high number of account closures. We've also recently learned that a large number of employees are failing to achieve their assigned monthly sales quotas which went into effect in January and as a result, AVP, Joseph Garcia, and CLO, Cindy Garvin are preparing to issue a large number of written warnings. As we predicted in our last post, expect a large number of employees to be terminated over the next year. 

The final results of the strategies implemented by Mr. Garcia and Ms. Garvin will serve to prove their competency and effectiveness as officers or whether they are following the same route to failure traversed by the President and former COO, Beatrice Walker. Mr. Garcia's performance since his arrival at South Pasadena is one characterized by complete incompetence so we don't expect him to succeed at anything he endeavors to do. Ms. Garvin on the other hand, chose to accept employment at a credit union whose President is dishonest, corrupt, a compulsive liar and a sexual harasser. If she believes his can correct the long slew of mistakes he committed since his appointment to President, then's she's being more than a little naive. The causes of the credit union's problems are it's President and it's Board of Directors. Because the President remains in authority over all aspects of the credit union, don't expect anything Ms. Garvin attempts to do, to succeed. For success to be realized requires removing the President and either the entire Board or it's Chair, the notorious and incompetent, Mrs. Diedra Harris-Brooks. 

 INADEQUATE

As reported in our last post, employees of all branches are nowadays required to work from 9 a.m. to 1 p.m. each Saturday and on Wednesdays, until 7 p.m. 

On Saturdays, employees undergo training which is not actually training but rather, reminded that they'd better achieve their assigned monthly sales quotas or suffer possible termination. On Wednesdays employees call members at their homes and invite them to apply for loans. One problem that has arisen is that employees are often being told by members that they have no interest in the credit union's products. According to several employees, members often state that they have no interest in anything the credit union has to offer. The responses are no merely declining the credit union's invitation to apply for loans, members are apparently displeased and even angry with the credit union.

Another issue reported by employees is that members who are displeased that the credit union primarily only offers Home Equity Lines of Credit. As reported by us last year, Priority One now only offers HELOC's while first-time mortgage applications are referred to CUNA Mortgage for review and if approved, Priority One receives a fee. 

The increased hours employees are mandated to work are failing to produce the results Mr. Garcia and Ms. Garvin said would be achieved while a majority of loan applications during overtime worked, are being denied because applicant's have failed to meet the credit union's eligibility requirements. 

Under Mr. Garcia and Ms. Garvin's plan, efforts are focusing on members who have been with the credit union for more than ten years, who only had a savings account, and who have never obtained products or services from the credit union.  Evidently, the President, Mr. Garcia and Ms. Garvin didn't do their homework. If they had, they would have discovered that new members must be acculturated within a few months after joining a credit union. If too much time passes without reaching out to new members, it is almost often impossible to convert them into active participants of the credit union. People who have been members for fifteen or more years are not interested in applying for loans yet this is the sector the three officers are focusing on and hoping to induct into the credit union. It's not going to happen. 

COUNTING HER EGGS

In January, AVP, Sylvia Perez, unwittingly proved members are losing interest in whatever Priority One has to offer. She recently exclaimed to several employees at the Burbank branch that she'd submitted several new loan applications of which, "$75,000 are now in the pipeline." Mrs. Perez is as misinformed as the President. Loan applications that have been approved cannot be counted as income until they are funded. The alleged loans submitted by Mrs. Perez had not been funded and were not even approved. She was being more than a little presumptuous. Last month, Mrs. Perez reluctantly admitted that everyone of the applications she submitted, had been denied. 

As we've reported in previous posts, the President's desperate rush to reap new business is unrealistic. The refusal by members to acquire what the credit union is offering is the result of the President's refusal to maintain and develop relationships with the communities served by the credit union. It is evident that the credit union is now reaping the results of Charles R. Wiggington, Sr.'s failure to maintain rapport with the membership. 

However, the President is tenacious and in recent weeks, escalated the raising of defenses to at least create the impression that business is performing will. Not only is he continuing to manipulate financial reporting by reducing the amount of actual losses and increasing the little profit made, all so that the credit union's performance appears more palatable on paper though he has yet to hide the fact that since January 1, 2007, Priority One's net income has dropped by more than $24 million.  

flim·flam

ˈflimˌflam/

informal

noun

noun: flim-flam

1. nonsensical or insincere talk

"I suppose that you suspect me of pseudo-intellecutal flimflam"

verb

verb: flim-flam

1. swindle (someone) with a confidence game.

"the tribe was flimflammed out of its land"

President Wiggington may be a complete failure as President, but he is treacherous.  He is well aware that the credit union's employees are ignorant about the credit union's finances and in November and December he told employees of the Burbank branch that business was soaring as attested to by the credit union's high capital.

At the beginning of January, during an all-staff meeting, he assured employees that things were "great" but a week later while meeting with managers he did a complete 180 and threatened to terminate employees and close the Burbank branch if an immense amount of new business was not gotten over the next 30 to 60 days. As we wrote, he is treacherous though sufficiently inept in his cunning that his lies are eventually exposed. 

As we reported last month, Priority One is in deep financial straits, thanks to the President's long list of blunders and so, with the help of CLO, Cindy Garvin, and AVP, Joseph Garcia, has assigned every employee monthly sales quotas. Employees who do not attain their assigned quotas during a single calendar month will be issued a written warning. If the employee fails to achieve their assigned monthly sales quotas for a consecutive two-month period, they will be terminated.  

The plan is in no way intended to motivate employees. The fact is, Priority One can no longer afford to pay the current number of full-time employees it has. The President has also grown weary of being called a failure, which he of course is, and doesn't want to order widespread terminations which would further affirm that he is incapable of resolving the problems he created due to imprudent business planning initiated over the past five (5) years. As reported in our last post, if employees fail to achieve their mandated quotas they will be justifiably terminated which the President believes will transfer focus from him to employees. Of course, it's just another typical Wiggington plan developed with the help of his officers and like all his previous plans, one that targets and hurts employees. 

The President has also ordered that a "hold" be placed on loans that were approved more than thirty (30) days ago. Usually, an approved loan expires at the end of thirty (30) days. The reason for this is that an applicant's credit union can change, sometimes adversely during a thirty (30) day period. 

Not one to be dissuaded by rules, policies or even laws, the President knows that the approved but unfunded applications will create the impression that loan requests are higher than they actually are. Under his new directives, approved loan applications will remain active for sixty (60) days even though an applicant's credit history could adversely change over a thirty (30) day period. The President's decision is not only irresponsible but places the credit union at jeopardy of potentially funding "bad" applications which could lead to losses. In the end, President Wiggington is gambling with credit union monies.   

An audit of all loans funded during the month of February, should be performed. The audit could verify when the loan application was opened, approved and funded. If funded in December or January but not reported until February, then the credit union is guilty of altering records.

OOPS

Last week, the President told some of his executive staff that the credit union has just received notice it is being sued by the last Branch Manager of the Valencia office. This is the third lawsuit filed by a former employee, further dispelling the President's October, November and January statements that Priority One has never been sued by any former employee. Apparently, it has. 

The talkative President revealed the latest complaint levels accusations against former COO, Beatrice Walker, who is accused of creating a hostile work environment, of harassment, of same-sex sexual harassment and of stalking. The President is also named a Defendant for his refusal to interceded and stop the harassment and for conducting an investigation in which he not only suppressed the evidence of abuses committed by Ms. Walker but reduced the COO's egregious acts to a mere "personality conflict." 

The President also revealed that he was scheduled to meet with Board Chair, Diedra Harris-Brooks on Tuesday, March 13, 2012. He must have been extremely worried that it caused him to again violate confidentiality and publicly disclose aspects of the latest lawsuit that should only have been discussed with the Board, the Supervisory Committee and the credit union's expensive attorneys. 

Predictably, the President described all of the latest allegations as a "lie" and an effort by the Plaintiff to "extort" money from the credit union. He added that the lawsuit is intended to tarnish his reputation, though we don't understand how his reputation could be tarnished further. 

He also insisted that the former Branch Manager was treated with respected and fairly and that the credit union went out of it's way to accommodate her. If allowing her to be abused, harassed and stalked is an example of treating her with respect, then yes, the credit union did indeed accommodate her. President Wiggington is not only a man who intentionally distorts history but he is immersed in denial and occupies a reality that no one else can perceive.

In early September 2010, the Valencia Branch Manager lodged a verbal complaint and in person against COO, Beatrice Walker, to Human Resources "clerk", Esmeralda Sandoval. Ms. Sandoval who is incompetent and dishonest, reported the allegations to her supervisor, Rodger Smock. Mr. Smock contacted the President. The President informed Board Chair, Diedra Harris-Brooks. Mrs. Harris-Brooks who had grown tired of Ms. Walker's inabilities to resolve the problems created by President Wiggington ordered that an investigation be conducted but was concerned that the incident could escalate and prove to be another embarrassing debacle for the credit union as were the allegations of sexual harassment lodged against the President in 2008 and the lawsuits filed by two former employees in 2010 and 2011. 

And so the President, who veiled his real intents, drove to the Valencia branch accompanied by his side-kick, Senior Vice President, Rodger Smock. At the direction of Mrs. Harris-Brooks, he listened to the Branch Manager's complaint and supporting testimony of the Business Development Representative assigned to the Valencia branch. After listening to their statements, he asked each woman to send him a written statement of their complaints and of what they had been told by Ms. Walker. He also informed the women that he would be removing Ms. Walker's authority over Human Resources. In August, Ms. Walker took all authority from Mr. Smock over Human Resources and transferred it to herself. It was part of her plan to force Mr. Smock into retirement. 

A week later, the President received the documented complaint and testament and initiated an investigation, however, from this point on, he avoided the Valencia Branch Manager and Valencia Business Development Representative's calls and emails because Diedra Harris-Brooks told him to squash the complaint in the same way she squashed evidence he sexually harassed a former employee. She instructed him to issue a letter advising the Branch Manager that her complaints and concerns were unevidenced and that he concluded that the conflict with Ms. Walker was nothing more than a "personality conflict." 

A few days later, the incompetent and dishonest, Esmeralda Sandoval, contacted the Branch Manager and told her she needed to advice the credit union if she was going to accept their offer to transfer her to the Burbank branch where she would serve as it's Assistant Branch Manager and her annual salary reduced by $24,000. Miss Sandoval told her she had until 5 p.m. in which to accept the offer or accept a severance package. Miss Sandoval also reminded the Branch Manager that the Valencia branch was scheduled to close on October 31, 2010. 

The Branch Manager who was on vacation and on the east coast, contacted Miss Sandoval and informed her that she would accept the severance package. Miss Sandoval asked that she forward an email to the credit union, describing her decision.

WASTED EFFORT

Each Monday morning, AVP of Sales and Business Development, Joseph Garcia, conducts meetings with business development representatives, AVP's and Branch Managers from and South Pasadena office during which he is provided with the a list of all new business gotten by each employee. Recently, attendees have disclosed that Mr. Garcia has grown more and more annoyed by the fact that the majority of all loan and membership applications are denied because applicant's fail to meet the credit union's eligibility requirements. 

The meetings are a complete waste of valuable time. Mr. Garcia is not providing attendees with the tools needed to acquire new business, he is merely reviewing their weekly progress. Does't he realize that the production reports submitted at the end of each month provide the credit union with a record of all new business? As we've often written, Mr. Garcia is a complete incompetent yet the inept President has deemed it prudent to pour yet another titled on Mr. Garcia and given him authority to oversee sales and the development of new business when their is nothing in his performance record to prove he has ever had any success in either area. The problem with Mr. Garcia is the equally incompetent President and the again, the Board who allowed Mr. Garcia's promotion. 

As mentioned in our last post, employees are required to work on Saturdays for a period of four hours during which members are called and invited to apply for loans. Not surprisingly, most loan applications are ultimately denied and the "overtime" employees are forced to work is further taxing the credit union's financial resources. 

CLO, Cindy Garvin, and the inept, Mr. Garcia, have targeted long-time members who only have a savings account and have never been recipients of the financial products and services offered by the credit union. Of this group, the two officers have provided employees with lists of members who are employees of Providence, the corporation that owns St. Joseph, Tarzana and Holy Cross medical centers. Employees have discovered that many of the telephone numbers on file are disconnected and because this sector of members have never been acculturated to what Priority One offers, they are disinterested in the credit union's products and services. 

The President, Mr. Garcia and Ms. Garvin really have no idea what they're doing, do they?

TRI-VALLY BRANCH 2902, NATIONAL ASSOCIATION OF LETTER CARRIERS

and

PROVIDENCE HEALTH AND SERVICES

Priority One's relationship with employees of the postal service has historically never been as strong as it's relationship with the postal service in the city of Los Angeles. However, since last year, the credit union's business relationship with postal facilities located in the San Fernando and Santa Clarita Valleys has deteriorated. 

Over the past year, some leaders of the TriValley Branch 2902 National Association of Letter Carriers AFL-CIO have said they don't want anything being offered by "Charles R. Wiggington, Sr.". It's interesting that they didn't mention Priority One Credit Union but rather, it's President. 

In 2007, the President ordered AVP's and Branch Managers to reduce business development efforts to employees of the United States Postal Service and ordered increased efforts placed on developing new business amongst Select Employer Groups ("SEG"). At the time, he stated he wanted to increase the number of alleged "white collar" workers and reduce "blue collar" workers in an ambitious attempt to change the credit union's demographics. His decision caused a drastic drop in business and by 2010, he retracted his plans and ordered increased focus placed on developing new business amongst postal workers. 

The postal facilities in the San Fernando and Santa Clarita Valleys want little to do with the credit union and have often refused the credit union's requests to attend union meetings at the Tri-Valley Branch 2902's union hall. Don't expect Priority One's standing in this region to improve anytime soon. 

The relationship between Priority One and Providence St. Joseph Medical Center, one of the credit union's largest SEG's have apparently soured. In 2010, Priority One through AVP, Sylvia Perez, opened discussions with the administrators of St. Joseph Medical Center to relocate the Burbank branch to the basement of the hospital. Negotiations were started but quickly fell apart when the credit union's officers, Charles R. Wiggington, Sr., Beatrice Walker, and Rodger Smock would not return the hospital's calls. The medical center eventually withdrew it's offer marking the start of the rapid deterioration between Priority One and the medical center. In the months which followed, the hospital withdrew its long-time invitation which had allowed the credit union's business development team to come and speak at new hire orientations to invite new employees to join the credit union. More recently, the hospital has disclosed that they are considering asking the credit union to remove it's ATM from the hospital basement. 

Both CLO, Cindy Garvin and AVP, Joseph Garcia, have disclosed that President Wiggington is "furious" at the hospital's administrators who have reduced the credit union's access to hospital employees and it's ability to do business. Maybe the President should have thought of that when he and his staff refused to return the hospital's calls. By the way, he did the same thing that occurred in early 2009, when the President refused to return calls from Mr. Boone, the Postmaster of the Airport postal facility, who wanted the credit union to move into an available space within the facility he managed. 

Providence St. Joseph has absolutely nothing to lose should it's relationship with the credit union come to an end. The medical center's existence is not contingent upon a relationship with the credit union. However, Priority One's ability to do business is contingent upon it's members and an end of it's relationship with Providence St. Joseph would adversely impact the troubled and declining credit union. 

JUMPING SHIP

Another competent employee has resigned. Last month, a former Real Estate Loan Officer who was transferred against her will, to work at the Burbank branch to serve in the capacity of an FSR, resigned. 

In her letter of resignation, she thanked the credit union for having hired her. She was being polite. However, before resigning, the FSR told co-workers she was tired of the credit union management's confused leadership and it's inability to achieve goals. 

She was originally appointed to work in the Real Estate Department in South Pasadena. After Assistant Burbank Branch Manager, Linda Nisely, was laid-off, the Real Estate Loan Officer was transferred to the Burbank office to serve as interim Assistant Branch Manager and without an increase in salary. She later returned to South Pasadena where she resumed her role in the Real Estate Loan Department but in late 2011, the credit union eliminated the many types of real estate loans once offered to members, leaving only HELOC's. The Real Estate Loan Officer found herself forced to return to the Burbank branch in the capacity of an FSR. 

Before leaving, she complained about the erratic personalities of Director of Employee Development, Robert West, and AVP, Sylvia Perez, and their lack of organization and often, aggressive demands. 

On Friday, February 25th, she advised the credit union that she was resigning and not returning to work. 

ESCAPE

On Wednesday, February 22, 2011, Director of Project Management and overseer of Credit Resolutions, Yvonne Boutte, busily gathered some of her things as she prepared to move to

her new desk in the Member Services Department. As she gathered her things, she stated she is "relieved to leave the collections department" explaining she has grown tired and bored with collections. 

Though Mrs. Boutte could have made more of an effort to conduct herself in a manner that bespeaks an officer of the credit union, her statements might actually be nothing more than a way to mask her true feelings about her new and expanded role at the credit union. 

On July 11, 2011, just three days after her former friend, COO Beatrice Walker, was terminated, Mrs. Boutte told employees that she hoped she would be named the next COO. The hiring of CLO, Cindy Garvin, who oversees operations for all branches, brought an end to Mrs. Boutte's aspirations. We don't believe she is happy to move to Member Services because it is a role she has been relegated to and not one she either requested or wanted. 

Mrs. Boutte may have been bypassed for promotion to COO because of her 2009 and early 2010 behaviors in association with her then friend, Beatrice Walker. 

In 2009, Beatrice Walker developed a friendship with Mrs. Boutte in record breaking time. The two women became inseparable, leaving the credit union each day during which they took breaks and lunches. Often, employees saw them standing together talking in the alleyways located around the main branch in South Pasadena, in the parking lot under the main branch, on Marengo Avenue and at a nearby park.  Their not-so-secretive meetings and juvenile behaviors soon fueled widespread gossip that spread to all branches. 

It also didn't help quell rumors when Ms. Walker disclosed that Mrs. Boutte would sometimes spend weekends at her home whenever Mrs. Boutte's husband, a truck driver, was out of town. 

Mrs. Boutte along with then Call Center Supervisor, Joseph Garcia, became confidants of Ms. Walker and soon began divulging Ms. Walker's plans to be become President and CEO because in her opinion, "Charles isn't President material.:" She was actually correct. 

Mrs. Boutte and Mr. Garcia also participated in "management meetings" that always excluded President Wiggington and Senior Vice President, Rodger Smock. In late 2009 and early 2010, it was clear that a new regime was beginning to take over the credit union. For Mrs. Boutte and Mr. Garcia, allying themselves to Ms. Walker held the promise of future promotions and substantial salary increases. At least that is what they'd been promised by Ms. Walker. 

Unfortunately, for Ms. Walker the alliance between Mr. Garcia and Mrs. Boutte crumbled faster than you could say, "I'm going places." As that relationship soured, the Mr. Garcia and Mrs. Boutte began disparaging one another publicly. 

Initially, Ms. Walker became incensed with Mr. Garcia because she'd come to realize he had a bad temper and failed at every position she'd promoted him to. But things grew worse. By late 2010, a rift fractured Ms. Walker's "friendship" with Mrs. Boutte and in due time, Mrs. Boutte began telling her staff that Ms. Walker was an incompetent who "doesn't know what she's doing." The cunning Mrs. Boutte who had intentionally distanced herself from the President, returned, reaffirming her allegiance to him. He accepted her return if only to start his own alliance against the ambitious COO. 

In July of this year, the President obtained authorization from Board Chair, Diedra Harris-Brooks, to terminate COO, Beatrice Walker, but the President was apparently not ready to promote Mrs. Boutte to the post of COO. However, with assistance of CLO, Cindy Garvin, it was decided that the CLO needed assistance to carryout her new oversight over all branches and no one would be better suited to assist her than Mrs. Boutte. 

Mrs. Boutte's current position constitutes a lateral move and is a far cry from the lofty perch she hoped to occupy following Beatrice Walker's ouster. For the arrogant, aggressive, unpolished, and abusive Mrs. Boutte, this is indeed a disappointment. It should be seen as peculiar that she now heads very important departments all located in South Pasadena when just recently, she informed President Wiggington that she "I don’t trust anyone in this place [South Pasadena].” It might help Mrs. Boutte to know that few people at any brach, trust her either.  

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INVALIDATION

In 2010, Senior Vice President, Rodger Smock, “most of our members are not postal employees.” The pompous AVP was of course, wrong. 

The credit union's webpage contains images to two calendars designed and paid for by the credit union for employees of the United States Postal Service ("USPS"). The “USPS Employee Rotating Day Off Calendar” provides employees a record of days when they are scheduled to be off from work, dependent on their assigned shift (A,B,C,D).  The calendar is used by employees to schedule vacations. The second calendar, references holidays and USPS paydays. Evidently, the amount of members who are employed by the postal service is significantly more than what the obtuse Mr. Smock insists it is. 

Mr. Smock's statement was not due to ignorance. He's been employed by Priority One for many years and is intimately acquainted with its history. What the dishonest Senior Vice President was trying to do was diminish the actual amount of postal employees who are members of the credit union. Mr. Smock is aware that the once strong ties with the postal sector has grown weak and declined since Charles R. Wiggington, Sr. became President. Mr. Smock doesn't have the courage or integrity of character to admit to this publicly. 

Mr. Smock has also been a pivotal player in helping the President dispense misleading information which tries to portray Priority One as a credit union that is thriving and growing when it's own Monthly Income Statements and quarterly Financial Performance Reports ("FPR") prove it is not. 

Mr. Smock also ignores the fact Priority One was founded by postal service carriers and that most of the Directors and Supervisor were former employees of the postal service. Maybe former COO, Beatrice Walker, was correct when she stated Mr. Smock needed to be retired. 

CATASTROPHIC

Priority One Credit Union survived the Great Depression of 1929, World War II, the Korean and Vietnam Wars, and numerous economic upheavals impacting the American economy but in its 83-year history it never suffered more set-backs that it has under leadership of President Charles R. Wiggington, Sr. Charles R. Wiggington, many of his executive and managerial staff, the Board of Directors under Diedra Harris-Brooks and the Supervisory Committee, under Chair, Cornelia Simmons, have brought disgrace to the once thriving credit union. They have destroyed the accomplishments of past Presidents, employees and certainly, far more ethical Boards and committees and of hardworking staffs. 

In November and December, the President entered into yet another of his deceptive and frankly, inane campaigns, intended to dupe employees into believing that Priority One was finally turning a profit, but his "lies" were exposed in January of this year when he ordered the immediate acquisition of new business or he would be forced to lay-off employees and possibly close the Burbank branch. The fact is, Priority One is faring poorly. So poorly it will probably close the doors to it's Burbank branch and as we disclosed in our last post, lay-off a large number of employees. It's is the only way the President can keep the doors of the organization open for business while ensuring net capital remains high. 

We've also learned a few weeks ago that he personally contacted the management company that oversees the property where the Burbank branch is located and informed them the branch will close either at the end of May or June. That certainly doesn't sound like he "might" close the branch but that a decision has already been made that the branch will close. Not surprisingly, he hasn't even informed AVP, Sylvia Perez, the acting Branch Manager of that office and his alleged "friend" and ally, that the branch will close. According to Mrs. Perez she has not heard anything about the location's impending closure and trusting the President, doesn't believe he will close the branch or make plans to close it without first informing her. 

Don't expect good things to happen to the mismanaged organization at anytime soon. As Directors O. Glen Saffold, Thomas Gathers, and Janice Irving said in October 2006, they selected Charles R. Wiggington, Sr. to serve as President because what "Priority One needs is a Black president." Evidently and at their own admittance, competency and ethics had no baring in their decision. 

Joseph Garcia is ill-qualified to serve as AVP of virtually anything. He's not experienced, not bright, and has proven his greatest talent is pandering. On the other hand, CLO, Cindy Garvin, in accepting employment at Priority One may have taken on much more than she can handle. She whether intentionally or non-intentionally, accepted to take on the horrendous and seemingly insurmountable problems created by President Wiggington. We'd strongly suggest she seek employment elsewhere. 

The new strategy developed by the President, Ms. Garvin and Mr. Garcia is designed to terminate employees not imbue them with the tools needed to achieve their monthly sales quotas. Expect many employees to lose their jobs and despite the statements by the President that he "might" be forced to close the Burbank office, that location has already been scheduled to close.

Also, in early 2011, the President and Board Chair, Diedra Harris-Brooks, were informed by the credit union's attorney that over the years, Rodger Smock, had violated credit union policies and state and federal laws, leaving the credit union vulnerable to lawsuits. The credit union moved to revamp Human Resources to create the impression that the department is designed to develop staff and create a cohesive working relationship between employees and the credit union in compliance to all laws. It's a sham. 

Last year, Priority One transferred a long-time loan processor assigned to the South Pasadena branch, to the Los Angeles branch. It's important to mention that she also lives near South Pasadena. Though the employee never complained about her job, she did express dissatisfaction with having to drive so far to go to work. 

At the end of 2011, her supervisor, Lynnette Fortson, informed her that the Employee Development Department had requested she drive to South Pasadena to attend a meeting. Though a senior employee of the credit union, having over the years served as a Teller, DMV Specialist and a Loan Processor, the credit union informed her that they were going to lay her off because they could no longer afford to pay her salary. 

She asked if she could work as a teller or in another capacity but was informed that there were no available positions within the company. This seemed odd to the Loan Processor, because there were several part-time employees working throughout the South Pasadena branch. 

As in the case of most lay-offs, if a position becomes available, the employee may be recalled to work. Instead, the credit union recently hired a new employee to work as a Loan Processor despite the fact, they could have called the former employee to advise her of the opening.

The former employee went as far as contacting Board of Directors, Chairperson, Diedra Harris-Brooks, who assured her she would look into the matter and allegedly promise to reinstate her position within a few weeks. 

Recently, while visiting the South Pasadena branch, the former employee observed a new Anglo employee working in the Loan Department. When she inquired who the employee was, she was promptly informed that the employee is a new, Loan Processor. Irked and disappointed, the former employee contacted Mrs. Harris-Brooks, again. The infamous Chairperson told her she was scheduled to meet with the President and would inquire why the former employee had not been recalled to work.

What the employee was subjected to is a formula created by former COO, Beatrice Walker. In 2009, Ms. Walker boasted that if you want to drive out an employees, just reassign them to a branch location far from their home. If the employee doesn't resign, lay them off and wait six (6) months to hire a replacement. It's also interesting that Mrs. Harris-Brooks made assurances that fall far outside her capacity as Board Chair, but then again isn't her history marked by abuses and excesses?