Waiting to Be Rescued, Part II

SALVATION

During the past 10-days, Priority One Credit Union has been busily finalizing planning for installation of it's first call center which COO, Beatrice Walker, has dubbed an "all-stop center." 

According to President, Charles R. Wiggington, Sr. and AVP, Rodger Smock, the building of the call center is necessary and will resolve member service complaints which have increased substantially since Charles R. Wiggington,Sr. was appointed President on January 1, 2007. 

But will the call center succeed in resolving member service issues? Historically, President Wiggington's inspired services have all crashed. He has yet to introduce anything that succeeds. Last year, he spent $600,000 of credit union monies purchasing a phone system that has become a technical nightmare. The reason we often refer to the phone system as "his phone system" is that the President did not allow the system he selected to be reviewed by any other staff member. He selected the system and he obtained approval to buy the system. He also didn't conduct necessary inquiries that might have confirmed that it would satisfy the credit union's service needs. As a result of his blunder, the credit union is now forced to spend money on technicians who visit the South Pasadena branch, each and every month, to try and resolve the latest slew of technical problems being reported by Priority One. 

The cost of installing a call center will again offset President Wiggington's so-called efforts to "streamline" spending and rents yet another tear in his proclamation that he is "working smarter." The center is being built in a period when the credit union remains submerged in the RED. 

On the surface, it seems the credit union has not learned a thing from the long list of blunders committed by President Wiggington, but to be fair, let's look at what steps COO, Beatrice Walker, has taken to ensure that installation of the call center is exactly what Priority One needs.

First, the idea to create a call center had been discussed for years before Ms. Walker's arrival. Also, none of the products and services conceived by Ms. Walker were actually her idea. During her first week at the credit union, she called her associates in the credit union industry to ask what might she introduce that could create streams of income and which might serve to elevate her position at the credit union. Some of the ideas provided to her, are:

• Skip-a-Pay
• Courtesy Pay (overdraft protection)
• Priority Pay (payday type loan)
• A call center

Evidently, she suffers from the same lack of imagination as does President Wiggington. She also shares his proclivity for plagiarizing ideas and taking all credit for these. 

We've learned that she has planned visits to other credit unions where she'll have an opportunity to tour their call centers and ask questions needed to facilitate implementation of what surely will be touted as "her call center." 

We'll keep you informed as we receive more information about the credit union's latest expensive endeavor. 

Technical Problems

This week, the credit union became the recipient of unwanted member complaints which cited technical problems affecting Priority One's free home banking services. 

An investigation revealed that the cause of the problem was the recent installation of new telephone lines and wiring for the planned call center. We've learned that it never occurred to the technicians and consultants hired to install wiring that the new phone lines could disrupt the credit union's already technically trouble phone system. What's more, after learning about the problem, no one at the credit union, including President Wiggington, thought it prudent to post a message on the credit union's webpage. This could have reduced the number of complaints which bombarded the credit union's phone lines. We must ask again, is this an example of what President describes as "working smarter?"

Consultants = More Expense

During May's Annual Meeting, the President disclosed he was reducing spending, "streamling" and "working smarter." To date, he has contradicted himself numerous times and immersed the credit union in constant, uncontrolled spending. Aside from the creation of the credit union's first call center, the President has again contracted the services of the consulting firm of Lillestrand and Associates. The firm's founder and consultant, Loren Lillestrand, is slated to return to the South Pasadena branch to resume interviewing employees.  

A few months ago, Mr. Lillestrand met not-so-secretly with the President and COO, Beatrice Walker, at the home of AVP, Rodger Smock. A few days later, he arrived at the South Pasadena branch and during a three-day period, met with employees during which he administered personality tests to gauge employee personalities, interests, likes, dislikes and strengths. During his two and a half-hour meeting at Mr. Smock's home, the credit union paid Mr. Lillestrand $3,000. 

Either President Wiggington has a large stash of cash available to spend on strategies that no basis of research to guarantee their potential success or he's using the credit union's resources as his own piggy bank all at a cost to employees whose salaries have been subjected to an ongoing wage freeze. 

FORECASTING THE FUTURE 

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Since this blog's inception in January of this year, we've often received emails and comments which try to forecast Priority One's future. Here are some of the comments we've received:

"I do agree that P1 is destined for regulatory action, possibly within the 2/22/10 time frame. There is a minor problem since the NCUA doesn't really care much for liquidations. What credit union would want to merge with P1 and assume this sordid mess?"

In response to the comment, another reader wrote:

"P1 needs to have something that makes it attractive to another cu and it has nothing except a history of bad decisions by a bad president and an even worse board."

Priority One's future seems bleak though not because of the nation's economic climate but because of gross leadership. The President and the Board are both entirely unqualified to direct the credit union and though it's reasonable to assume the credit union may merge or worst still, be liquidated, President Wiggington is not without choices. One alternative available to him and the Board is closing branches. Closures would eliminate the amounts spent each month on leasing the buildings where branches are located. The exception to his his the LAPCD and Van Nuys branches, both of which are located within postal facilities and pay a monthly lease of $1.00. 

MEANINGLESS CUT-BACKS

Styrofoam cups have become the latest victim of President Wiggington's cutbacks. According to the President the credit union can no longer afford to provide these to employees. 

Several months ago, the President implemented a company-wide wage freeze for all non-exempt employee salaries though exempting executive staff salaries. 

• He next hired a COO who we've learned is being paid more than $100,000 per year.
• He also has spent money on expensive consultants.
• He's order spending on the construction of a call center.

To offset these expenses, he's announced the credit  union can no longer afford to purchase Styrofoam cups. Hum? So how much money will the credit union save each year, by eliminating Styrofoam cups? $1000, $3000, $10,000? 

This latest decision by the President proves again that he is implemented expense reductions where they will have little if any impact to the credit union's finances. The decision also indicates that Priority One is performing so badly it can no longer afford to purchase Styrofoam cups. And though the President insists the elimination of Styrofoam cups will serve to offset losses, he continues to insist that business is good and growing. Is he daft? Obviously, if business were good, he wouldn't find it necessary to cut what really must be one of the credit union's smaller expenses. And again, his decision circumvents executive salaries and benefits and again ensuring that the salaries they earn and lifestyles they enjoy, remain safely intact. 

PENDING TERMINATIONS

During a recent meeting with ambassadors, the majority of who are employees of the U.S. Postal Service, the President was asked if the credit union would be terminating more of the credit union's employees. He replied, “Well, we're making adjustments.” His answer, possibly an attempt at sounding non-committal and certainly neither a "yes" or :"no" was both inane and telling.  

At the end of October 2009, CFO, Manny Gaitmaitan, was asked to review all employee salaries and titles for the purpose of determining which employees will be marked for future termination. 

The President's and COO's current review of employee salaries and titles serves as yet another indicator that Priority One is not only struggling financially but that the President and COO don't foresee a resolution to the credit union's problems at any time in the near future.

Like the current review of salaries and titles, President's answer that "Well, we're making adjustments" suggests that more terminations are planned for the near future and that Priority One's financial problems may be far worse than even it's reports suggest. 

Where's the Evidence?

CRIMINAL PROCLIVITIES

Since January of this year, Priority One Credit Union’s President, Charles R.  Wiggington, Jr. and Board Directors, Thomas Gathers and O. Glen Saffold, have leveled accusations against this blog, including, ”It’s nothing but a bunch of lies”, “Its nothing but a bunch of jealous employees”, and “They've got nothing better to do.” We wish we could be that petty, but we’re not.

What the three officers maybe insinuating is that in their opinions, there is no evidence to prove that our assertions are true. Of course, the overly verbose President may have recently and inadvertently, admitted to the veracity of what we report when he said, “I’m going to find out who’s leaking information to the blog” and “I know they've put bugs [electronic surveillance equipment] in my office.”  If the President wants to stop the leak, he need only desist from divulging the confidential information that is making its way to the Internet.

At Priority One, evidence of wrong doing is always deemed highly disruptive to the President and Board’s agendas. Both the President and the Directors seem to spend more time forging plots than trying to develop strategies to that reap new business and generate real profit.

Evidence to the President’s failures or as we witnessed in 2008, evidence he sexually harassed a former employee will not be tolerated and will always be squashed. At least, that is what Board Chair Diedra Harris-Brooks did when a detective provided evidence proving President Wiggington sexually harassed a former employee.  Here are other incidents involving President Wiggington, that have been unsuccessfully covered up by the President and Mrs. Harris-Brooks.

Justice Auto Sales

In 1999, President Wiggington introduced his close friend, Henry Justice, the owner of Justice Auto Sales to Priority One. Mr. Justice soon became an automobile broker of the credit union. In 2002, the credit union sent Mr. Justice a check approximately $80,000 for vehicles purchased from his dealership by 4 of the credit union’s members.

Mr. Justice was to surrender the titles for each automobile so that Priority One could add its name as lienholder on each pink slip until the vehicle loans were fully satisfied. Mr. Justice refused to surrender the titles, alleging his daughter had made off with the monies paid to his dealership.

When the credit union filed a lawsuit, Mr. Justice filed for bankruptcy protection which was eventually granted and Mr. Justice escaped having to  repay the monies paid to him by the credit union.

Recently, Mr. Justice and his son visited the South Pasadena branch and was happily met at the reception desk by the President. The three proceeded to the Board Room where they remained for about an hour. After leaving the room, the three left the branch to go and have lunch at a local South Pasadena restaurant.

A few days later, the President announced that he was reinstating a business relationship between the credit union and the dealership which was now owned by Mr. Justice’s son.

Evidently, President Wiggington  was unconcerned by the fact that Mr. Justice made-off with approximately $80,000 which he never paid back.

The President also didn’t care about the tremendous inconvenience 4 members were subjected to when Mr. Justice refused to surrender the pink slips.

And Mr. Wiggington didn’t care that 3 different DMV Specialists were forced to visit the DMV office in Lincoln Park on a monthly basis for over a 2 year period to pick-up temporary registration cards for  4 members.

President’s intended reinstatement of Mr. Justice crumbled after we reported what he intended to do. Not only did he bring an immediate end to his plans to reinstate Mr. Justice but he instructed Mr. Justice to deny that they had ever planned to resurrect a working relationship.

Danny Wafa, Member (Victim)

In the early 2000’s member,  Danny Wafa’s loan payment became delinquent due to illness in his family. At the time, the Supervisor of Credit Resolutions visited Mr. Wafa at his home during he structured a repayment agreement.

The supervisor returned to South Pasadena and presented the repayment agreement ot his supervisor and owner of the credit union’s contracted collection agency. When the  owner realized the vehicle was a BMW, he immediately visited Mr. Wiggington in his office. Mr. Wiggington ordered that the repayment agreement not be approved and ordered the car repossessed.

The President and the owner of Credit Resolutions drew up phony papers to make it appear the car was sent to auction. The evidence that the car was never sent to auction is found in the fact that when a car is sold at auction, any monies recuperated from the sale, are applied to the outstanding balance. In 2009, the member’s online loan file shows that no payments were ever applied after the vehicle was repossessed and proving the car was never sold. DMV records also show that Mr. Wiggington became the owner of the vehicle immediately after Mr. Wafa.

The President would later state that he purchased the vehicle from a dealership but that is an utter lie as attested to by the DMV. What’s more the member’s file has disappeared from the main branch and was not located on microfiche or at the collection’s agencies headquarters in Glendora, California.   

Here is additional information about the former member’s automobile

Year/Make: 1989 BMW

VIN: WBAGC4310K3317406

Last 2 Owners: Charles R. Wiggington, Sr. and Danny Wafa

License Plate # at time of Repossession: 4NRM325

Incense Platte # after Repossession” WINKS589

"WINKS" is also referenced on the license plates found on some of the President’s other BMW’s.

We recently spoke to Mr. Wafa and he describes the repossession as one of the worst things to ever affect his life. So where is Mr. Wafa’s file?

Patrice Polley, Member

In the early 2000’s, President Wiggington was enraptured by a beautiful member named Patrice. He first met her when she visited the South Pasadena branch to try and obtain a $27,000 automobile loan but unfortunately, did not qualify because her FICO score was 520. Though she did not satisfy the credit union’s eligibility requirements, Mr. Wiggington offered to meet her at Fat Burgers in Los Angeles to discuss her request. On the day of their meeting, Mr. Wiggington was accompanied by his uncle. He would later say, “When Patrice entered the place, every eye turned to look at her but she came to us.”

 The President approved Ms. Polley’s request so that she could purchase a used Mercedes from a Beverly Hills dealership.

Like Mr. Wafa’s loan file, Ms. Polley’s file has also disappeared. How is it possible that the records for these two important transactions have disappeared entirely from the credit union’s files?

Employee (Victim)

Former Real Estate Loan Officer

In 2008, the Assistant Branch Manager of the Los Angeles branch sent a letter to credit union attorney, William Adler, informing him that she had been sexually harassed for a number of years by Charles R. Wiggington, Sr.  The President was placed on an approximate 6-week paid suspension during which an investigation was conducted to determine if he had indeed violated federal law. At the end of the investigation, evidence was presented to the Board proving that Mr. Wiggington had sexually harassed the employee, however, Board Chair, Diedra Harris-Brooks squashed the evidence and with the assistance of Directors, O. Glen Saffold and Thomas Gathers and Supervisory Chair, Cornelia Simmons, voted for his reinstatement.

The Director of Marketing

On January 1, 2007, the date Charles R. Wiggington began his appointment as President, he launched a scathing campaign against the Director of Marketing. As part of his attack, he placed the Director under authority of AVP, Aaron Cavazos, knowing that for years, Mr. Cavazos had expressed his disdain for the Director.

Next, he had the Director’s desk moved to the dusty file room located in the South Pasadena branch’s back officers. However, staff at the branch rose up and complained and three days later, he moved the Director to a desk located in the executive wing but he gave her former office to Mr. Cavazos.

A few days later, the President had the Director demoted to Coordinator of Human Resources.  

A few days later, AVP and Director of Human Resources, Rodger Smock, informed the former Director that her salary would be reduced commensurate with what is usually paid to a coordinator.

Director, Janice Irving interceded and prohibited the President from reducing the former Marketing Director’s salary.

A week later, then Human Resources “clerk”, Esmeralda Sandoval informed the former Director of marketing that she was being stripped of her exempt status and would from here on, have to clock-in like all other non-exempt personnel.

A few weeks later, the President ordered that the former Director be laid-off, stating that she did not fit his “vision” for the credit union. So was ruination of the credit union part of his vision?

An Unattended Child (Victim)

In 2008, a member visited the credit union and left a baby locked in her car which was parked in the parking structure located under the South Pasadena branch.

Members entering the branch heard the baby crying and immediately reported to the staff in the Loan Department. The staff informed the member that the baby was crying but the member who was sitting in the member services department involved in a person conversation with an FSR, merely replied, “I’ll be down shortly.”

Because both the President and Mr. Smock were not in the office, the VISA Card Specialist informed Robert West, the Training and Education Manager, about the incident including the member’s refusal to go to the car to pick-up the baby. Mr. West told her, “Call the police.” Both police and firemen quickly descended on the branch and retrieved the crying baby form the locked car and arrested the member.

The following day, the President was informed about the incident. He went into an uncontrollable tirade, yelling and demanding that every employee involved in calling the police be brought to his office individually.

Each employee was informed that they would be terminated should they choose to call the police should another such incident occur. He also told each employee, “Poor member, you have no idea what you’ve done to her” and said that the police should only be called if a baby is left in a locked car that is NOT parked on credit union property.

President Wiggington’s childish and irrational temper tantrum was inexcusable and his directives threatening termination should the police ever be called again was just plain stupid. The President is immensely ignorant of the fact the law requires that police must be called whenever a baby is left unattended in a locked car.

The President’s proclivities for dishonesty and his erratic and disruptive behaviors should be a point of concern but unfortunately, Priority One’s Board of Directors is made up of amoral, apathetic and corrupt Directors who are just deplorable as the person they appointed President of what was once a respected and thriving credit union. 

Oh, What a Tangled Web We Weave, When First We Practice to Deceive

The best and most beautiful things in the world cannot be seen or even touched. They must be felt with the heart

- Hellen Keller -

Margaret Hungerford eloquently wrote, "Beauty is in the eye of the beholder." She was absolutely correct. Inarguably, physical beauty can profoundly effect our behavior though within a working environment, we are expected to exercise self-discipline and refrain from surrendering to our impulses. This is why companies ratify policies that explicitly prohibit certain behaviors. Failure to adhere to these structures can result in profound ramifications, including resulting in the loss of employment, marring a person's and company's reputations, ruining family relationships and resulting in the filing of lawsuits that often end with a court ordering payment of some monetary award. 

SMITTEN

In May 2001, an attractive Afro-American woman visited Priority One Credit Union's main office located in South Pasadena, California to apply for an automobile loan. The member, Patrice P., requested a loan in the amount of approximately $26,000 so that she could purchase a 2001 Mercedes Benz from Beverly Hills Ltd, located at 9250 Beverly Boulevard in Beverly Hills, California. Patrice P. knew before visiting the credit union that she might not qualify for the loan, but she was intent on purchasing the vehicle which she desperately needed to own. She was smitten. 

Patrice P.'s loan application and credit report were being reviewed when the Vice President of Operations, Charles R. Wiggington, Sr., entered the Loan Department and immediately noticed Patrice P. He was smitten. 

The Vice President walked over to where Patrice P. sat and introduced himself. A short time later, he handed Patrice P. his business card and invited her to call should she ever have a question or need to express concerns, about her accounts or the credit union's services. 

After Mr. Wiggington walked away, Patrice P. was informed that her request for an automobile loan was being denied due to several derogatory references and a FICO score of 520. 

Patrice P. thanked the Loan Officer and left the credit union. The following day, Patrice P. called Mr. Wiggington to discuss her loan application and the reasons why her request had been denied. Following conclusion of their conversation, Mr. Wiggington visited the Loan Officer who had reviewed Ms. Polley's request and asked that he be provided the file containing the member's application and credit report. Once obtained, he returned to his office to review the documents. 

On Monday, March 12, 2001, Mr. Wiggington and his uncle drove to Fat Burgers located at 4070 Marlton Avenue, in Los Angeles, California (90008). The two sat and waited for Patrice P.'s arrival. The President would later admit that he invited his uncle because he wanted him to see Patrice P. 

A short while later, Patrice P. entered Fat Burgers and according to the President, sauntered across the room where both men waited. The President would recount then when walked across the room, "Every man had their eyes on her, but she came and sat with us." During the meeting which followed, they discussed her loan and before leaving, he assured her he would try to get her request approved. 

On March 13th, a giddy Mr. Wiggington hurriedly made his way to the Loan Officer's desk and excitedly reiterated his story about his meeting with Patrice P. Mr. Wiggington's response is completely understandable if he was a 14-year old boy, but at the time he was almost 50-years old. 

He informed the Loan Officer that he had signed Patrice P.'s documents approving issuance of the loan. The Loan Officer was taken aback because she knew the credit union's eligibility requirements weren't so pliable as to allow approval of a $26,000 loan for a member whose FICO Score is 520. The credit union's eligibility requirements were ratified by the Board of Directors and found in Priority One's Loan Policy. Mr. Wiggington's decision to grant exemption to the credit union's very specific requirements constitutes discrimination against those members who apply for loans but due to their credit scores being equal to or higher than Patrice P.'s, are denied their requests.  Overcome by his urges, the middle aged officer found it impossible to comply to Priority One policy. 

NOT SO HAPPILY EVER AFTER

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Patrice P. got her loan and returned home with her dream Mercedes Benz. Things didn't fare as well for Mr. Wiggington who returned home to his wife and children but who was never contacted again by Patrice P.  He became so incensed that a few weeks later, while speaking to the loan officer who funded the loan, he angrily exclaimed, "That's it for me. She'll [Patrice P.] never get another loan from me." 

The only reason Mr. Wiggington was incensed is that whatever fantasy he concocted wasn't realized. He had been scorned after being manipulated. Unlike President Wiggington, Patrice P. actually knew her marketplace and extracted from it, exactly what she wanted. The President was far outside of his league when her pursued Patrice P. but in the end, her interaction with him ended when he exhausted his use. 

One of the reasons why credit unions have eligibility requirements is to determine a person's credit worthiness and whether or not they pose a risk. The requirement help the credit union ascertain if a person will be able to repay the loan granted to them in good faith. The requirements serve to protect the credit union from incurring potential losses, a fact Charles R. Wiggington,Sr. never considered when he decided to disregard the rules created to protect the credit union, its assets, and its members. . 

Tricks and treachery are the practice of fools

who do not have the wisdom to be honest

Benjamin Franklin