Priority One Credit Union: The 2011 Election

ITS TIME TO GO!

It's election time again at the Priority One Credit Union and some of the seats on the Board of Directors are up for re-election. Of course, we can't forget that in 2009 and 2010, Board Chair, Diedra Harris-Brooks, ruined the integrity of the electoral process when she violated state law in her zeal to ensure none of the Directors and Supervisors lost their seats. Mrs. Harris-Brooks is immensely interested in all things political though she doesn't possess the same fervor for the well-being of the credit union, it's members and it's employees. 

This month's post provides the biographies of the current incumbents. These are the same officers who served in 2008, 2009, and 2010, when the credit union's net assets declined in the millions of dollars. Some of the officers also voted reinstatement of President Charles R. Wiggington, Sr. even though they viewed evidence proving he sexually harassed a former employee. What most of the officers lack is integrity and ethics. 

The officers have all proven pliable and easily bend to the will of Mrs. Harris-Brooks. Not one is qualified to serve on either the Board or Supervisory Committee. They each depend on the President to interpret financial data contained in the credit union's monthly financial statements. Because they are unqualified, they are all incapable of achieving what is best for the credit union, members and employees.  

Not only did the incumbents all choose to retain the employment of President Wiggington after evidence proved he sexually harassed a former employee, but it was the Board that has for over four years, approved what is wasted spending on numerous failed projects and who have intentionally ignored violations of security perpetrated by the corrupt President. Some of these include:

• Illegally took possession of a former member’s automobile
• An attempt to reinstate a business relationship between the credit union and Henry Justice, the former owner of Justice Sales who in 2003, absconded with more than $80,000 of credit union money
• The hiring of COO, Beatrice Walker, at a salary of over $100,000 per year and whose "streams of income" have either failed  or performed poorly.
• The purchase of a $600,000 technically flawed phone system
• Remodeling of the South Pasadena and Burbank branches; and
• Construction of what has proven to be a failed phone system

As you read the incumbent biographies, note they avoid being specific, often speaking to their qualifications in the most general of terms. 

TAMPERING

This past week, members began receiving ballots which were mailed out late. Ballots were accompanied by a page containing the biographies and photographs of incumbents and nominees. Mrs. Harris-Brooks arranged the order of the biographies and photographs and as might be expected, her biography and photo are at the top of the list. 

In October 2009, in our post titled “Hiding Facts, Pushing Lies, we reported how the Chairperson and President attempted to limit publication of the notice mandated by the state of California which informs members about the annual election and invites members in good standing to nominate themselves to vie for available seats on the Board of Directors or Supervisory Committee. 

After their plot was exposed on this blog and in the weeks following the mailing of ballots, a meeting was conducted at Priority One’s main branch in South Pasadena, during which the Board of Directors and Supervisory Committee convened to try the remedy the illegal act committed by the Chairperson and the President. Having been given ample time to concoct an excuse, the two informed the Board that publication of the notice in only the Winter was unintentional and a mere oversight. The Supervisory Committee, whose failures to perform due diligence and who, since 2007, have turned a blind eye to the acts, scandals, and cover-ups committed by the Chairperson and the President, decided to resolve the embarrassing problem by conducting a new election. Of course this came at a time when the credit union’s financials were beginning to unravel and amidst increasing ominous signs that the credit union’s future seemed less than promising. Ballots were ordered reprinted and a letter was sent to all members advising them that the election was to be repeated and expending an invitation for nominations. New ballots were also ordered. The attempt to correct what the Chairperson and President caused came at a cost of thousands of dollars, constituting yet another financial loss resultant from the unethical acts committed by this shameful and inept duo.

During what became the “second annual” election, the Chairperson and President were joined by Director, Bobby Thomas, who oddly enough, is a representative at the National Association of Postal Carriers’ (“NALC”) Branch 24, serving as a liaison between the carrier’s union and U.S. Postal Service and whose key responsibility is to ensure adherence by the U.S. Postal service to the ratified bargaining agreement entered into with mail carriers of the U.S. Postal Service.

As we reported in 2010, Mr. Thomas solicited a nomination from a postal carrier all in an effort to reduce the amount of votes which might potentially go to David Davidson and Janice Irving. When the carrier failed to submit his application, the Chairperson mailed a letter, reminding him to submit his application BEFORE the mandated deadline.

Several days after the deadline passed, the member walked into the South Pasadena branch with his application in hand. President Wiggington ordered the application brought to him even though the deadline had expired. When handed the application,, the President happily exclaimed, “I’ve been waiting for this”. Despite evident violation of state law, the always dishonest Chairperson and President included the member’s name and biography in last year’s election. The Chairperson would later laughingly state, “We got what we wanted” even though her actions were a violation of state law and complete disregard for ethics.

During the electoral process, COO, Beatrice Walker, and her former business associate, "friend" and confidant, Yvonne Boutte, urged employees of the South Pasadena branch not vote for David L. Davidson or incumbent, Janice Irving, describing both as trouble-makes and bad for the credit union. It's more than a little hypocritical that neither woman, both of who have had a polarizing effect on the working environments of all branches, could point crooked fingers at Mr. Davidson and Mrs. Irving. 

When the election's results were announced Mr. Davidson lost by a small margin though Mrs. Irving garnered the highest number of votes amongst all the incumbents in part because current and former employees rallied on her behalf. 

 THE BOARD CHAIR'S PLOT

Having been “outted” has never forced Harris-Brooks to alter her unethical proclivities. In fact, exposure of her illegal and unethical behaviors seems to fuel the Chairperson’s resolve to hide her tendency to violate laws. Rather ironically, it is her vigorous efforts to hide wrong doing that most attest to her malicious tendencies. 

Each incumbent and nominee is required to submit a biography and a description of the reason they wish to serve on the Board or Supervisory Committee along with their photograph. You'll note that Mrs. Harris-Brooks has made certain her biography and photograph appear first and before those of any other incumbent or nominee. 

Mrs. Harris-Brooks may not intellectually bright but she is cunning. On the backside of the page containing the names of incumbents are the names of first-time nominees which this year are former CFO, Manny Gaitmaitan, and Jimmy R. Cummings. Mr. Gaitmaitan resigned on 12/31/09 after being ostracized by the President for refusing to reduce actual reported financial losses and fraudulently increase reported profits. 

You'll also notice that the biographies for Harris-Brooks, Thomas Gathers, Richard Hale, and first-time nominee, Jimmy R. Cummings, are ALL written in the third person. Mr. Saffold’s is written in both the third and first person. We recently learned that the biographies for each incumbent were composed by Turner, Warner, Hwang, and Conrad AC. though apparently, the biographies were not proofread. 

We've also recently learned that Mrs. Harris-Brooks is the recipient of all nominations and suffered a bout of angst when she received Mr. Gaitmaitan's application. According to AVP, Rodger Smock, Mrs. Harris-Brooks consider Mr. Gaitmaitan a threat. A threat to what? Her lack of integrity or dishonest proclivities? According to President Wiggington, Mr. Gaitmaitan was interviewed by the Board at which time, he was asked questions composed by CFO, Saeid Raad. According to the President, the questions were designed to disqualify Mr. Gaitmaitan from participating in the election. Their plot failed.

Unable to control her dishonest proclivities, the always corrupt Board Chair sent all but Mr. Gaitmaitan's biographies to be rewritten by Turner, Warner, Hwang, and Conrad AC which is why Mr. Gaitmaitan’s biography is shorter and written in the first not third person.

On the positive side, we wouldn't be able to write about Mrs. Harris-Brooks if weren't for her incessant need to tamper with the electoral process. 

Also, this year's ballots were intentionally mailed late. According to the always talkative President, if the ballots were mailed late, this would reduce the amount of time members would have to respond and return these to Turner, Warner, Hwang, and Conrad AC.  By the way, the ballots must be submitted to the accounting firm, no later than  midnight, May 24, 2011. 

THEIR BIOGRAPHIES

As you read through the biographies which follow, please note that Board Chair, Diedra Harris-Brooks' biographies is being far too modes. She fails to mention that it was she who single-handedly orchestrated the reinstatement of Charles R. Wiggington, Sr. to his post as President and CEO even after an investigator from EXTTI, Inc. provided evidence proving he sexually harassed a former employee. It was also she, who tried to suppress the evidence against Mr. Wiggington which might have succeeded had Director, Janice Irving, not disclosed that he had been found guilty of violating federal law. 

• She also make no mention of her plot to control which members received notification of the 2009 and 2010 elections or her efforts to ensure former Director, David L. Davidson, was not reinstated. She also fails to mention how she allowed member, Jeffrey M. Chen, to submit his nomination application more than a week after the deadline for submissions  had passed. 

• She also omits all reference to how she authorizing more than $600,000 to be spent on a technically defective phone systems and how in mid-2008, she authorized the borrowing of more than $20 million from the credit union's line-of-credit which forced the credit union to spend more than $30,000 to $58,000 each month, paying interest charges against the principle. 

• It was also Mrs. Harris-Brooks who allowed the President to refuse posting of the credit union's Monthly Income Statements in "conspicuous locations within each branch" even though refusing to post the statements was a violation of state law. 

• She also omits any reference to the fact that she and the Board ignored evidence that President Wiggington repossessed an automobile from former member, Mr. Danny Wafa, and afterwards, transferred ownership to his name without paying a cent for the vehicle. Yes, it was fraud, but the board not only ignored the illegality of the transaction but has year after year, granted the President raises. 

• She also fails to mention that while she has served as Board Chair, the credit union's asset size has declined by more than $15 million. 

• She also conveniently omits that while she's been Board Chair, the credit union has closed the Redlands and Valencia branches. 

 FUN FACTS

Here is a summary of the credit union's asset worth as occurring while Diedra Harris-Brooks has served as the Board's Chairperson.

January 1, 2007

(On the date Charles R. Wiggington, Sr. began serving as President)

$172,250,649

December 31, 2007

$166, 872, 190

December 31, 2008

Total asset worth after applying $20 million loan borrowed in mid-2008 from the credit union's line-of-credit

$172,119,164

(Actual asset worth: $152,119,164)

December 31, 2009

$165,835,129

The credit union paid $10 million of the $20 million borrowed in mid-2008, thus reducing their asset size $155,835,129. This constitutes a decline in assets of approximately $17 million since January 1, 2007, the date Charles R. Wiggington his appointment to President. 

 

December 31, 2010

$154,486,638

Their actual asset size was $145,486,638 after deducting the remaining unpaid $10 million balance due on the $20 million loan borrowed in mid-2008 from the credit union's line-of-credit.
Mrs. Harris-Brooks, like the President, has proven to be plutonium to the credit union. Despite her unscrupulous behaviors and immense business failures, she has garnered the gall to again run to defend her seat on what has to be one of the industry's most ineffective Boards. 

DIEDRA HARRIS-BROOKS 

Mrs. Harris-Brooks is not just the Board's Chair, she is it's despot and has proven she will not tolerate Directors who disagree with her mode of administration, i.e., Robb Shipley, Dave Davidson, Janice Irving. 

In her biography she emphasizes that she is "approaching" her 9th year as a Director of the Board and has served as it's Director for 6 years. That actually might be impressive if the credit union had grown and thrived under her leadership. The fact is, Priority One never thrived because of her and the other Directors. If she truly were a competent Director, then the credit union would have continued to grow after 12/31/06, the date William E. Harris retired as President and CEO of the then, $172 million credit union. The credit union's decline began on 1/01/07 the date Charles R. Wiggington, Sr. became President and inarguably, she and the other Directors don't possess the knowledge, intelligence, or imagination to direct the credit union. 

She also states that she attended the University of Phoenix where she "completed Business Management and Marketing courses and holds a 3.5 GPA. Her knowledge and marketing skills has proven to be an asset to Priority One." Actually, it should have stated, "Her knowledge in marketing and computer skills have proven to be assets to Priority One." 

Mrs. Harris-Brooks provide no evidence of what knowledge she is referring to. Clearly, it's not financial knowledge. And what marketing skills? The former Retail Manager at the United States Postal Service never references where she studied marketing or what she's ever accomplished in marketing. Her statements are not evidenced by anything that would validate her claims. 

She again provides absolutely nothing to prove she held a 3.5 GPA while enrolled in classes offered by the University of Phoenix. Based on her performance as Board Chair, we doubt her statement but of course are open to looking at the evidence of what she alleges. 

And what computer skills is she referring to? This is such a general statement that it really says nothing about her alleged expertise. 

Mrs. Harris-Brooks biography also states “she left a 20-year legacy of exceptional managerial service and earned the respect of her employees” before retiring from the U.S. postal service. We'll have to take her word on that and of course, we won't. We've spoken to some employees of the Los Angeles Postal Distribution Center on the corner of Florence and Central Avenues who had worked for and with Mrs. Harris-Brooks and many describe her as caustic and haughty. She also was not on friendly terms with the Postal Manager of the facility, James Smith. 

What's more, this is the same woman who tampered with the 2009 and 2010 elections and who reinstated Charles R. Wiggington, Sr. after he was found guilty of sexually harassing a former employee. How then could anyone respect Mrs. Harris-Brooks?

She concludes by stating she “continues to expand her knowledge of the operations of this credit union and is looking forward to continuing her voluntary services to the Board of Directors, Priority One Executive staff, employees, and members.” Since 2007, we've seen absolutely nothing to attest that her knowledge of the credit union's operation is expanding or that she is committed to serving the credit union and in particular, employees and members. Mrs. Harris-Brooks is of course, lying. 

From a business perspective, is the credit union's $100,000 CD which pays 0.00% an example of her wonderful financial savvy? We think it's time Mrs. Harris-Brooks leave and try selling her wares to people who don't know her and who are ignorant of her devices. 

 THOMAS GATHERS

THOMAS GATHERS

Thomas Gathers panders to Diedra Harris-Brooks. That seems to define the extent of his contributions to the Board. He, like Mrs. Harris-Brooks, has bent over backwards to ensure Charles R. Wiggington, Sr. remains President even in the light of evidence that Mr. Wiggington violated state and federal laws. If we could describe Mr. Gathers in one word, it might be fixture. He just occupies a chair on the Board and unless he can provide proof, he is a non-contributor to the betterment of the credit union. In 2008, he was one of four officers who voted to reinstate his "friend", Charles R. Wiggington, Sr. to his post as President, even though he was presented with evidence proving Mr. Wiggington sexually harassed a former employee and in spite of the fact the investigator from EXTTI, Inc. recommended the President's termination. Mr. Gathers is a tool. 

Mr. Gather’s biography states he is “currently serving as the Chairperson of the Bylaws Committee…. and various other committees.” Which various other committees is he referring to? He is as general in his references as is the Board Chair. We're uncertain why he chose to disclose that he attends “Holy Trinity Lutheran Church” when he often uses profanity, ogles female employees of the South Pasadena branch and is often the brunt of jokes by the other Directors who mock his personal hygiene. 

RICHARD HALE

The incumbent has at times, found it difficult to attend Board meetings, in part, because he resides in Riverside, California, miles away from Priority One’s South Pasadena office. This begs us to ask, “Why then are you on the Board if you can’t attend on a regular basis?” His absences should have resulted in his removal from the Board, but then again, President Wiggington’s embarrassing conduct and long record of failures, should have led to his termination. 

According  to his biography, Mr. Hale has served as a member of the Board “for many years.” How many years, Mr. Hale? 

He alleges to have “devoted a considerable amount of his personal time to the credit union and understands financials needs of its members.” How much personal time, Mr. Hale? And if you understand financials, then please explain in detail versus general terms, why the credit union has lost millions of dollars in assets over the past four years? And why would the credit union have deemed it necessary to close the Redlands and Valencia branches in 2010, if Mr. Hale's financial knowledge was at it's disposal? 

O. GLEN SAFFOLD

Mr. Saffold is known by some employees for his 2006 statement that he selected Charles R. Wiggington, Sr. to succeed former President, William E. Harris, because "the credit union needs a black President." Not exactly a Rhodes Scholar, Mr. Saffold chose skin color over competency. Nothing racist about that, is there? 

Mr. Saffold also spent years expounding his belief that O.J. Simpson was targeted by the White man and was innocent of his former wife's murder. Why he deemed this an appropriate subject to discuss while at the credit union is inappropriate and inexplicable. 

His biography states the brings “a broad range of American economic and social expertise to the POCU Board of Directors.” General and in his words, "broad", Mr. Saffold doesn't state specifically what alleged "American economic expertise" he brings to the Board of Directors. Well? He is as evasive in stating he brings "social expertise to the POCU Board of Directors." What social expertise and where, pray tell, has it been applied in elevating the organization? 

Mr. Saffold's alleged expertise is certainly not attested to by the credit union's current financial state which is less than stellar. Mr. Saffold is a postal carrier. He was the supervisor of the postal carrier unit at the facility where he worked but following cut-backs implemented by the postal services, was offered a position to serve as a carrier or be laid-off. He accepted the former. We're surprised that he alleged expertise didn't garner him an executive position at the postal service. 

Mr. Saffold also states he is "steadfastly involved in the financial and member service improvements implemented by Priority One Credit Union.” Steadfastly? The credit union is in decline. Does this mean that Mr. Saffold's alleged involvement in delving out financial improvements is failing? Currently, complaints citing poor member service are at an all-time high. Should we blame Mr. Saffold's so called involvement for the deterioration of member service standards. 

Mr. Saffold was also one of the four officers who voted for reinstatement of Charles R. Wiggington, Sr. even though evidence proved he sexually harassed a former female employee. It was also Mr. Saffold who along with Diedra Harris-Brooks, who agreed to hire caustic COO, Beatrice Walker. 

Mr. Gaitmaitan's biography was not composed by Turner, Warren, Hwang and Conrad. Unlike the biographies of the incumbents, Mr. Gaitmaitan's was kept intentionally brief by Mrs. Harris-Brooks. 

In his biography, Mr. Gaitmaitan states:

”I was the Chief Financial Officer of Priority One Credit Union for 19 years. Mr. William Harris took me into the Credit Union when its name was still Postal Credit Union of Los Angels. I would like to save the Credit Union and can share my over 30 years of financial background. The Credit Union needs my help.”

We would have to agree with Mr. Gaitmaitan. Unlike Diedra Harris-Brooks, Thomas Gathers, Richard Hale or O. Glen Saffold, he actually possesses financial knowledge. Mr. Gaitmaitan is not perfect but he understand Priority One's operation and proved while serving as CFO, that ethics are critical to his performance and business decisions. 

While employed by Priority One, he also oversaw the Accounting Department and credit union investments. He was also involved in strategic planning and project management. He also introduced strategies that reduced spending and risks and revised business designs. Some of his contributions included:  

• Elimination of fees paid by Priority One to the Credit Union COOP and instead, transferring maintenance of ATM’s to the credit union. This resulted in savings approximating $100,000 per year; and
• Conversion of the Wide Area Network Computer system into Voice-over-Internet Protocol (IP) which resulted in an approximate decrease of phone costs by about $100,000 per year.

Unlike each incumbent, Mr. Gaitmaitan did not try to avoid alluding to specifics. That's because unlike the four incumbents, he has nothing to hide. 

 The four incumbents provide nothing specific to evidence their claims to expertise and knowledge. The proof of their performance is best attested to by the financial losses bombarding the credit union over the past 4-years. Their addresses are empty and each, is a ruse hoping members will embrace what they claim to have achieved, at face value. 

In the end, it's the members who will determine whether or not the four horrendous and ignorant officers remain on the Board or are removed. If the credit union is ever to regain its competitive edge, it requires the removal of these four officers. 

The 2007 Annual Report

SO HOW DOES THE 2007 ANNUAL REPORT HOLD UP A YEAR LATER?

We recently decided to go back and review Priority One Credit Union's 2007 Annual Report which was first released in May of 2008 during the Annual Meeting.

Though there are several reports allegedly written by the credit union's officers, we've decided to only focus on two of these. The first is the report signed by President Charles R. Wiggington, Sr. and the second is the report signed by Director and Treasurer, Thomas Gathers. 

The President's Address

The following is an excerpt from the President's and Board Chair's address, describing the efforts they plan on taking in 2008 to promote growth and new business.

In 2008, to further benefit members, the Credit Union will be presenting the following services and products:

• Credit Union will offer an investment CUSO to members, which will provide investment and retirement planning options.

• The credit union has joined the shared branching network, which will give our membership over 9,000 additional branches to conduct their transactions, beginning October 1, 2008.

• Student Loan Program—financial assistance for helping members and their families realize their dreams of achieving higher education.

• New phone system implemented to make calling into the Credit Union branches much more efficient.

• Credit Union will monitor and drive its ATM’s, which will reduce operating expense.

• Credit Union will implement ‘Check 21’, which will again reduce operating expense and reduce check fraud.

• During 2008, the Credit Union will have sweepstakes for members to participate.

• Electronic statements will be offered to all online members as an option. This service will allow our members to pull their monthly statements from their personal computers. This service will also reduce expense for the credit union.

I look forward to continue in meeting the needs of this Credit Union and helping to maintain its strength and vitality.

Charles R. Wiggington, Sr. President/CEO

So were the improvements described the President, implemented and if so, did they succeed?

Investment CUSO: SHAKY START

This is a valuable serve designed to help members increase their savings through investment and to prepare for their future retirement. The credit union contracted the services of CUSO who have assigned a financial advisor at the South Pasadena branch.

The President initially offered the position of Financial Planner to Board Director, David Davidson, who is the same person who received an anonymous letter sent to his home exposing President Wiggington's hand-picked AVP, Liz Campos, of kiting- a federal offense. Mr. Davidson, who was a Director at the time the position was offered, resigned his post on the Board because by-laws do not allow employees to serve as Directors. 

Within two months following his arrival in South Pasadena, the President with the assistance of AVP, Lynnette Fortson, created fraudulent accusations which resulted with the termination of the Financial Planner. The President exacted his revenge against the person he most blamed for Mrs. Campos' firing. Evidently, the President can't seem to comprehend that she violated federal law and should have been arrested and prosecuted. 

Mr. Davidson has since been replaced by Geoff Palenik, another CUSO Financial Planner. 

Shared Branching: TO EARLY TO TELL

According to the President, Shared Branching will increase business substantially and return the credit union to the state-of-profitability enjoyed in the years before Charles R. Wiggington, Sr. was appointed President. What the President failed to mention is that Shared Branching is EXPENSIVE! 

As is typical of President Wiggington, he never gauged members to determine if Shared Branching is a service they'd use.  He admitted that he decided to join the Shared Branching network based on reports provided to him by the Shared Branching provider. Don't be surprised by the President's actions. This is typical of him as he usually relies on what he believes to be true. We find it interesting that he chose to force another large expense on the credit union when business is in decline. 

Shared Branching will enable the credit union to obtain profits each time members from other credit unions visit one of the Priority One's branches to conduct personal banking. However, Shared Branching will not provide profits when one Priority One's members visit other credit union to conduct transactions to their credit union accounts. So how much profit is the credit union generating from Shared Branching which was implemented on October 1, 2008? 

The Student Loan Program: FAILURE

The program ended abruptly after just a few months. There was little interest shown by members and the provider closed its door. 

The New Telephone System: FAILURE

The system is a fiasco. Since its implementation in 2008, technicians from ATand T frequently visit the South Pasadena branch to try and resolve the latest slew of technical problems affecting the system. So did Priority One purchase the wrong system? The system was selected by President Wiggington without conferring this his officers. The system has also added yet another expense as technicians called to South Pasadena charge according to the IT Department, more than $100 per hour. 

ATM's: FAILURE

It was certainly a good idea for Priority One to drive it's ATM's instead of paying an outside contractor to maintain the equipment. However, since maintenance of the ATM's was brought in-house, so have member complaints that ATM's are inoperative or in some case, either no dispensing cash or dispensing less cash than requested. At the Los Angeles Bulk Center, members have lodged a large number of complaints that the facility's ATM is issuing the incorrect amount of cash. This has forced them to have to take time to submit their receipts to the main branch and await for money to be returned to their accounts. 

Without advising members, the President ordered that when a member requests quick cash that instead of the customary $40.00 dispensed by most institutions, that they instead be issued $100.00. 

Check 21: SO FAR, SO GOOD

Check 21 is functioning efficiently probably because it was designed by President Wiggington. 

Sweepstakes: FAILURE

Recently, the Priority One awarded an automobile to one of its members. We find it imprudent that the credit union chose to purchase and raffle an automobile when they ended 2008 more than $500,000 in the negative. We have to give this a failure due to a lack of common sense on the part of President Wiggington and the Board of Directors.

E-Statements: Failure

Inarguably, an added convenience. Yet, the service undermines members who are employees of the United States Postal Service. The current problems wracking the postal service were sufficient to elicit complaints from members accusing President Wiggington that E-Statements will reduce the amount of mail processed by the postal service. 

However, President Wiggington had a response, albeit it one that was immensely ludicrous. We were actually present during a meeting at the postal carriers Union Hall in Los Angeles.  While the President stood at a podium, a postal carrier stood up and accused the President of contributing to the decline in business that is impacting the postal service and which has in recent months prompted the closure of facilities and laying-off employees. The President glibly replied, "Don't worry, we don't expect anyone to use it [E-Statements]." 

Before implementing E-Statements that President could have surveyed members to see what the consensus was to introducing the new electronic service. 

THE TREASURER'S REPORT

Thomas Gathers, Treasurer

The “Treasurer’s Report” is found on page 9 of the 2007 Annual Report. It's author, Thomas Gathers, is a senior member of the Board. His fellow Directors publicly describe him as loud, brash, rude, and a man who has poor hygiene. In his address, he described Priority One as "a sound Financial Institution." Sound?

He describes the effects of Priority One's merger with Inland Counties Postal Credit Union as follows: 

• Total loans grew from $95.8 million to $103.0 million.
• Total assets decreased from $169 million to $166.6 million.
• Total capital grew from $16.9 million to $17.3 million.

Overall Priority One became stronger financially. Net Capital increased from 9.97% to 10.4%. According to the Treasurer, "Priority One’s continued stability and financial strength. Priority One makes every effort to accomplish increased income while continuing to provide quality, convenient services at minimal cost to our members. This is an on-going and often challenging goal for us….and we look forward in finding even more ways to offer low-cost convenient services in the future."

Thomas Gathers, Jr. Treasurer

Mr. Gathers subtly blames those areas of the business where financial difficulties occured as a result of the merger with Inland Counties Postal Credit Union. What an odd conclusion when he clearly attributes the growth in loans and capital to the merger. Maybe the aged Director became confused while signing the report written by Rodger Smock. 

The merger introduced $15 million of net income which increased the credit union's worth. However, the credit union has been experiencing losses due to the ineptitude and horrendous business decisions of President Wiggington. 

We invite Mr. Gathers provide an explanation of how he determined that the merger with Inland Counties was a bad move. In other words, Mr. Gathers, “Put your money where your mouth is.” He also fails to explain what happened to the influx of $15 million which was obtained from the merger. As Treasurer, he should have no problem providing an explanation. 

We won't hold our breath waiting for his reply. 

An Uninformed President and CEO

CHOOSING IGNORANCE

In a previous post, we described some of the differences between credit unions and other financial institutions. Credit Unions were established on the premise of "People helping people" and unlike banks, are distinguished by the fact they are not-for-profit. The key philosophical difference is their view of people. At a credit union, its clientèle are member-owners unlike banks, where clients are customers. 

Research shows that it takes approximately two-years to acculturate members and to convert them into active participants who seek out obtaining financial products and services from the credit union. The process of acculturation requires strategic planning whose goal targets members who have no previous history of participation in what the credit union offers that will allegedly improve their financial livelihoods. 

This past December, President Charles R. Wiggington, Sr. told employees during the quarterly all-staff meeting conducted at the main branch in South Pasadena, California that it was imperative that there be a marked increase in new members by the end of December 2009. So desperate was his directive that he exclaimed, "We don't have long to live." He statement is a contradiction to his frequent claims that business is "great" and "growing." He exclamation is not only a contradiction of what he's been saying for several months, it was more than a little inappropriate and undignified. 

So why is the President's strategic planning failing to reap the results he often asserts are being reaped? One problem may be that Charles R. Wiggington, Sr. doesn't comprehend the wants or needs of Priority One's many and diverse marketplaces. The cultural, economic and demographical differences of each region requires diverse strategies that succeed in reaching the communities served by the credit union. It's also evident that his 2007 elimination of the entire Marketing Department and its Marketing Director has served to exacerbate the credit union's inability to attract new business and members. 

If President Wiggington had taken the time to conduct research, he would have discovered that the elderly sector in the United States holds the majority of this nation's wealth. Since being appointed President on January 1, 2007, he has never created programs or promotions specific to the group of members who are elderly. 

He might also have discovered that to induced growth requires converting inactive members into active participants who become recipients of the credit union's products and services. Unfortunately, Charles R. Wiggington, Sr. relies on his emotions and on what he perceives to be true. The credit union's ongoing decline is attributable in great part to his inability to perform actual research that would provide understanding of the marketplaces served by Priority One Credit Union. 

Don't expect Priority One's fortunes to change at anytime soon. Like an owl holding a squirrel, President Wiggington will continue to cleave to his fantastical belief system which is mired in all things imaginary. It is said that "Ignorance is bliss" but in reality, "Ignorance is just ignorance."