Next Post

NEXT POST WILL BE PUBLISHED ON OR
AROUND June 7, 2016.

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

Our Readership: U .S., Ukraine, Russia, France, Germany, United Kingdom, Poland, Malta, Malaysia, Laos, Canada, Greece, Turkey, Sweden, China, Taiwan, Hong Kong, Isle of Man, Portugal, Morocco and more!

Translate

SEARCH THIS SITE

Showing posts with label annual report. Show all posts
Showing posts with label annual report. Show all posts

Thursday, March 20, 2014

THE 2014 ELECTION EDITION, Part 1 of 2





On February 28, 2014, the deadline ended for members of Priority One Credit Union to submit their nominations to run for a seat on either the Board of Directors or Supervisory Committee. Normally, nominees and incumbents hoping to be re-elected, would vie for a seat on either governing body so that they ensure the continued sound and stable operation of the credit union. Of course, the credit union's performance during the past 7 years reveals something is sorely amiss. The annual closure of branches since 2010 coupled by plummeting income and deficient marketing, indicates that qualified and knowledgeable officers are not currently occupying either the Board or Supervisory Committee. 

The credit union's Balance Sheet/Income Statements confirm that fees and charges levied to members now are a key source of income for the credit union while the closure of 6 branches in the past 4 years suggests reducing expenses has become critical to Priority One's survival. And though the credit union's capital remains high, the closure of branches coupled by a loss of more than $24 million in Net Income since January 1, 2007, clearly points to an inability to create a reliable and ongoing streams of income that generate profit, cover the costs of overhead, and which create the prospect for growth. Though Priority One's Board of Directors are the ultimate decision-making authority at the credit union and though they are responsible for directing and controlling the affairs of the credit union needed to ensure effective and efficient management, the current Directors have proven they each lack the competency and education needed to properly maintain the credit union's operation.

Certainly, President R. Wiggington, Sr. is a key cause for the credit union's continued decline which began when he was appointed President on January 1, 2007, however, it would have been impossible for his often horrendous and detrimental decisions to have ever occurred without the abhorrent incompetence of the Directors whose subservience to Chairperson, Diedra Harris-Brooks, has led to Priority One's apparently unstoppable deterioration. After all, its is Mrs. Harris-Brooks who in late 2006, urged the Directors to select Charles R. Wiggington, Sr. as the next President and CEO of the then thriving credit union. It was also Mrs. Harris-Brooks who aggressively pushed and won the reinstatement of President Wiggington following an 8-week suspension during which an investigation uncovered evidence he sexually harassed a former employee. 

It is also important to note that unlike other credit unions, Priority One's Board relies on the President and his executive staff to interpret the financial information they are provided. The Board's ignorance about financials and management and their compromising relationship to the President are critical component to Priority One's decline.  

THIS POST

Unless members submitted their nominations by February 28, 2014, Priority One Credit Union may not have an election. This phenomena of disinterest in the credit union by members began in the years after Charles R. Wiggington, Sr. became President though we believe the apathy towards the credit union was begun when Board Chairperson, Diedra Harris-Brooks, decided to interfere with the credit union's electoral process. In this post, we will show how the Chairperson's decisions and unwavering patronization of the President created an opportunity for the many debacles which have negatively impacted Priority One Credit Union since January 2007.  It is well-documented that Mrs. Harris-Brooks has exerted tremendous time, effort and credit union monies to ensure Charles R. Wiggington, Sr. remains President of what is no longer a competitive credit union and all at the cost to business, the internal operation, employee morale, and the credit union's very public reputation. 

To draw a reasonable parallel between the decisions made and actions taken by Mrs. Harris-Brooks and the credit union's ongoing failures, we've decided to publish documents she authored in which she describes her competencies and education and present these alongside facts confirming the credit union's actual performance during the period she has served as Board Chairperson. 


Over the past 7 years, Mrs. Harris-Brooks has ruled over a Board comprised of Directors who lack an understanding of the credit union's financial reports and whose subservience has allowed the Board Chair to exceed the state-mandated perimeters of her position. Here is a summary of some of the decisions authorized, enabled, and sanctioned by the Mrs. Harris-Brooks and her Board:
  • In 2007, Mrs. Harris-Brooks also authorized the President to dismantle the credit union’s once prize-winning Marketing Department and it was also Mrs. Harris-Brooks who allowed the President to lay-off the department’s Director and instead, install a Marketing Committee comprised of credit union employees all inexperienced in marketing.
  • In mid-2008, Mrs. Harris-Brooks led the Board into authorizing President Wiggington to borrow $20 million from the credit union’s line-of-credit for the mere purpose of plumping up the credit union’s net income which had begun to slip soon after Charles R. Wiggington, Sr. was appointed President.
  • In 2008, an investigation of President proved he sexually harassed a former employee, however, Mrs. Harris-Brooks knew she could only continue to exact her control over the credit union if Charles R. Wiggington, Sr. remained in office. Literally suppressing and ignoring the evidence gathered by an investigator from EXTTI, Inc., Mrs. Harris-Brooks led a battalion consisting of Directors, O. Glen Saffold and Thomas Gathers, and Supervisory Committee Chair, Cornelia Simmons, into voting for President Wiggington’s reinstatement. Mrs. Harris-Brooks and her pack held the majority vote and won reinstatement of the guilty President. Charles R. Wiggington, Sr. returned to work and led the credit union into failure, ending 2008, 2009, and 2010 immersed in the negative.
  • In early 2009, the President and Mrs. Harris-Brooks decided that there was a group of rebel employees residing within the credit union and that they must be ousted to bring an end to the criticisms regarding how Charles R. Wiggington, Sr. chose to do business. It apparently never occurred to Mrs. Harris-Brooks that acting ethically and focusing on business could have more effectively dispelled criticisms than launching a full fledged and very public witch-hunt. To resolve the issue, Mrs. Harris-Brooks authorized the hiring of Beatrice Walker, to serve as the credit union’s first Chief of Operations ("COO").  Ms. Walker arrived at the credit union on June 1, 2009. allegedly for the purpose of creating new streams of income, however, just prior to her arrival, the President divulged that the new COO would help target and vanquish his enemies. During Mrs. Walker's tumultuous 25-month stay, she wrecked havoc upon business, employee morale, and became the source of vicious gossip slandering numerous employees. However, her undisciplined need to control all things soon created a conflict with the President, the Executive Vice President, and eventually the Board of Directors. In July 2011, she was abruptly terminated for failing to fulfill her assigned responsibilities, for failing to bring an end to the President's detractors, and for defying the President and Board. Ms. Walker exorbitant spending failed to generate the amount of business she said would be reaped if she were allowed to implement changes without interference of the President. The Board eventually tired of her failures and became concerned about rumors regarding her sexuality. They ordered her to submit any proposed changes to policy and procedures or proposed campaigns, to either President Wiggington or Executive Vice President, Rodger Smock. Ms. Walker became incensed and complained that the "uneducated" Board was forcing her to obtain approval from the President and Executive Vice President, both of who she described as intellectually inferior. Unfortunately, for Ms. Walker, her murmurings reached the Board who ordered her ouster. 
  • In November 2009, Mrs. Harris-Brooks, President Wiggington, and Director, Bobby Thomas, interfered with the electoral process and manipulated what should have been a fair and democratic process all in an effort to retain the current Board of Directors who pander to Mrs. Harris-Brooks’ every whim. More on this, in April's post.
  • Beginning in 2010, Mrs. Harris-Brooks and the Board authorized spending on refurbishing the appearance of the main branch in South Pasadena and the lobby of the now Burbank branch, believing these would draw new business and increase membership.  Two years after the refurbishments were completed, the Burbank branch permanently closed its doors.
  • In 2010, Mrs. Harris-Brooks began authorizing the hiring of attorneys to defend the credit union against lawsuits filed by former employees and members. During the years of 2010-2014, the credit union spent more than $500,000 in legal fees.
  • Since 2010, Mrs. Harris-Brooks approved the President's plan to implement drastic expense reductions to marketing and business development. 
  • Beginning in 2010 and upon the advice of then COO, Beatrice Walker, Mrs. Harris-Brooks and the Board began implementing increased fees and charges to members. Not only has the credit union developed an addictive reliance on fees and charges as a key source of income, but it now resembles a bank more than it does a credit union.
  • Since October 2010 and again, under Mrs. Harris-Brooks, Priority One has closed 6 of 9 branches.
  • In 2011, Mrs. Harris-Brooks authorized the hiring of CLO, Cindy Garvin, who began working at the credit union on 8/01/11 and would be responsible for developing new  streams of income, jump starting lagging loan development, revamping the business development team, creating effective and cutting edge marketing strategies, and overseeing all of Priority One’s branches. At the time of her arrival, Rodger Smock  issued a memorandum to all employees, praising Ms. Garvin’s extensive past work experience. Despite the fanfare which accompanied her arrival, Ms. Garvin’s employment ended abruptly on 12/28/12, for allegedly failing to fulfill her assigned responsibilities.
  • It is also Mrs. Harris-Brooks and the Board who have continually authorized the hiring of expensive consultants over the past 7 years and whose expensive strategies have failed to improve business. The changes suggested by consultants included administering tests in 2009 to determine the likes, strengths, and knowledge of all employees so that personnel could be assigned to positions where they would best serve the credit union. After more than $30,000, none of the findings were used for staff development. In 2012. upon the advise of consultants, the credit union revamped its webpage, introduced an app for smartphones and saturated the Internet with copies of President Wiggington's and Executive Vice President, Rodger Smock's biographies. The webpage, app and inaccurate biographies have evidently not helped bolster business. 
Clearly, Mrs. Harris-Brooks has proven to be an adverse influence and can't be excluded as a factor contributing to the credit union's inability to develop new business, increase membership, and service its vast territories. Prior to January 1, 2007, the credit union merged with several smaller credit unions and as a result, incrementally increased its physical size and Net Income. Since Charles R. Wiggington, Sr. became President and under the Board Chair, the credit union has been forced to close branches and is now unable to service its vast territories, prompting them to emphasize home banking services and Shared Branching.  

It is also Mrs. Harris-Brooks who authorized the spending of more than $500,000 on attorney fees during the years of 2010-2014, in an effort to both defend the credit union from prosecution against allegations its officers violate federal and state laws and to cover-up incidents of wrong doing committed by the President, Human Resources, and other members of the executive sector. It is also Mrs. Harris-Brooks who authorized the settlement of 3 lawsuits filed by former employees. In her zeal to retain the horrendous President on payroll, Mrs. Harris-Brooks and the Board compromised the credit union's relationship with the communities it serves along with SEG's, postal employees, chapters, and city chambers. 



How the Board Chair Ruined the Electoral Process

In recent years, Board Directors, Thomas Gathers and Janice Irving resigned while the remaining Directors have been in place for more than 7 years, though not because of their devotion to the credit union, competency, or keen intellect. To the contrary, they remain on the Board in spite of their incompetence. . 


In October 2009, Mrs. Harris-Brooks decided it was critical to ensure no one on the Board was voted out during the upcoming 2010 election. Her concern and that of the President was that any change could offset their plans for the credit union. At the time as exists today, the Directors were all subservient to Mrs. Harris-Brooks. At the time, Mrs. Harris-Brooks, President Wiggington, and then COO, Beatrice Walker concocted a scheme to ensure the Board remain unchanged.  


Under state law, the credit union is to inform all members in good-standing, about the impending election and invite them to nominate themselves to run for either a seat on the Board or on the Supervisory Committee. Though ballots had been mailed, the three officers decided to only publish the notice and invitation in the Credit Union's Winter Newsletter which is ONLY mailed to members who have a savings and checking account and thereby excluding the very large number of members who only have a savings account. 

Their plan may have worked had we not discovered it and exposed it on this blog. Though the electoral process had begun, the Board and Supervisory Committee held an emergency meeting in South Pasadena and determined that the failure to have advertised the election and invitation to members compliant to state law could result in sanctions against the credit union. And so, new ballots were printed and money again spent on mailing these to members. The officers not only caused the credit union to spend even more monies to repeat the election but they violated state law somehow believing that their ploy would go unnoticed.


Forced to hold a second electoral process, then COO, Beatrice Walker, and then Credit Resolutions Manager, Yvonne Boutte, told staff assigned to the Member Services and Credit Resolutions Department not to vote for incumbent Director, Janice Irving, whose seat had come up for re-election. In 2008, Mrs. Irving unwittingly provoked the ire of the President and Board Chair when she voted for termination of the President after reviewing evidence proving he sexually harassed a former employee. Upon his reinstatement, Mrs. Harris-Brooks informed the President that Mrs. Irving had been one of two dissenting votes. In response, the President declared, "I'm going to make sure she get out of here!" Unfortunately, for the President, Mrs. Harris-Brooks, Ms. Walker, Mrs. Boutte and the others, Mrs. Irving was not only one of the winners in the election but she tallied the highest number of votes amongst all the contenders. 


Another reason why Mrs. Harris-Brooks tampered with the electoral process is that at the time, she received a nomination from a former White Board Director. The former Director had been branded the enemy by Mrs. Harris-Brooks and the President in 2007 while he served on the Board. At the time, the Director, a White male, received an anonymous letter at his home exposing then AVP, Liz Campos, of kiting. The Director delivered the letter in person, to the office of then credit union attorney, William Adler. Mr. Adler contacted the President and Mrs. Harris-Brooks and ordered an investigation of the AVP's bank records. The investigation revealed more than 24 separate incidents in which she overdrew her Priority One checking account. The investigation also showed that she was not charged the customary and required non-sufficient fund fee. It was also discovered that she had been writing checks in amounts exceeding her balances drawn from accounts at two other institutions. At the time, President Wiggington adamantly denied all knowledge of the more than 24 separate incidents despite the fact that the abuses occurred while he served as Vice President of Operations. Evidently, he lied.

Mrs. Campos was terminated for violating federal law and the incensed President expressed his furor against the Director who delivered the anonymous letter to the credit union's attorney. The the termination was performed accordance to policy, the childish and obtuse President was incensed because he had hand-picked Mrs. Campos for promotion to AVP despite her well-documented abuses to her checking account. 

What's more, Mrs. Harris-Brooks joined the fray, calling the Director who exposed the incident into a meeting and chastising him in the presence of other Directors, for not delivering the letter to her instead of the credit union's legal counsel. She warned the Director that should he ever circumvent the Board again, he would be removed from the Board. Evidently, the delusional Mrs. Harris-Brooks forgot that she is not an attorney nor is she qualified to investigate allegations that federal laws have been violated. What's more, she lacks the objectivity or ethics required to conduct an impartial investigation. 


In 2008, attorney William Adler received a letter from a former employee, informing him she had been sexually harassed by the President for many years prior while he served as Vice President of Operations. Mr. Adler ordered an investigation during which the President was placed on suspension. During his 8-week absence, Mrs. Harris-Brooks ordered the President be paid his salary. Historically, all other employees of Priority One who have been suspended are suspended without pay. 


At the conclusion of the investigation conducted by EXTTI, Inc., the investigator submitted evidence proving the President sexually harassed the former employee and recommended Mr. Wiggington's termination. Mrs. Harris-Brooks fought the recommendation and along with Supervisory Committee Chair, Cornelia Simmons, and Directors, O. Glen Saffold and Thomas Gathers, voted and won reinstatement of the President despite the fact he violated federal law. 


It was also Mrs. Harris-Brooks who signed a letter to the former employee who filed the complaint and advised her that according to the Board's "understanding" of what defines sexual harassment, the President had not violated federal law, adding that the information compiled suggested that the employee had not only participated the sexualized gestures and comments from the President, but provoked him into sexualized exchanges. Mrs. Harris-Brooks not only squashed the evidence, she violated credit union policy which quite specifically calls for the termination of ANYONE found to have committed sexual harassment. What's more, Mrs. Harris-Brooks vilified the former female employee by insinuating that Mr. Wiggington's illegal actions were somehow encouraged by the former employee.  Mrs. Harris-Brooks' determination in the matter, actually her manipulation and distortion of the facts were a travesty though quite revealing of her actual character. 


Following his reinstatement, President Wiggington decided to avenge himself against those who had caused him to be suspended. He decided to install a Financial Planner at the main branch in South Pasadena. Not-so-coincidentally, the Director who delivered the letter to Attorney, William Adler, was also a Financial Planner employed by CUSO. The President hired the Director to serve as the credit union's first Financial Planner. Because the Director could not work at the credit union while serving as a member of the Board, the Director resigned his position. Two months after being hired, the Director was abruptly terminated for unsatisfactory performance. 


In 2010, following receipt of the former Director’s application, Mrs. Harris-Brooks immediately conferred with President Wiggington  and it was decided that they must impede the Director from being reinstated on the Board. Director, Bobby Thomas, offered to induct a postal carrier who would run for a seat on the board. Because Mr. Thomas was an officer of the National Letter Carriers Association, Branch 24 in Los Angeles, he assured Mrs. Harris-Brooks and the President that he would make sure postal carriers voted for his nominee and thus lessen the amount of votes that might otherwise be cast for the former Director. 


The scheme almost failed when Mr. Thomas' nominee failed to submit his application to run in the election, though the deadline was quickly approaching.  Concerned, Mrs. Harris-Brooks mailed a letter to the postal carrier reminding him of the deadline, an act she had never committed for any other potential candidate.  A few days following the deadline, the postal carrier arrived at the main branch and asked to speak to the President. The President who never meets with members, sent his administrative assistant to meet with the carrier. His assistant was handed a packet containing the member's application even though the deadline to submit the application had already expired. 


The application was handed to the President who giddily exclaimed, “I’ve been expecting this!” He immediately called Mrs. Harris-Brooks to inform her the application had finally been received despite it having been received  late.  


Mrs. Harris-Brooks, the President and Director, Bobby Thomas succeeded in disrupting the election. Though the former Director did not win a seat on the Board, neither did Mr. Thomas' nominee. However, their intent was to defer as many votes from the former Director to their candidate and in this they did succeed. However, the three never considered the 
ramifications their actions might have upon future elections. The President, the Board Chair, and Director Thomas, transformed what had traditionally been a democratic and unbiased electoral process into a joke. 




To identify Diedra Harris-Brooks' accomplishments and contributions requires first reading what she says about her competencies and education. Then all one has to do is simply compare what she writes about herself with what is documented in credit union reports. 

During the 2010 election, Mrs. Harris-Brooks' seat came up for re-election. At the time, she submitted the following biography, which we originally published on this blog on November 28, 2011 and written in the third person, describing her abilities, education, and hopes. 





“She has held the position [Board Director] for the past six years and is dedicated to her responsibilities as a volunteer.”

Mrs. Harris-Brooks alleged dedication to her responsibilities is certainly arguable. We've no doubt of her dedication but not for the well-being of the credit union or its members but to ensuring her whims are satiated and her continued control. guaranteed. As is well documented, Mrs. Harris-Brooks has far over-extended her authority exceeded what is defined under state law. She doesn't oversee the credit union's operation to ensure its sound performance, she is the one who decides what will be implemented and what will not. In fact, in 2007, prior to his suspension from the credit union, the President complained to Executive Vice President, Rodger Smock, that Mrs. Harris-Brooks was in his words "pushy" and "over-extending her authority." 

Beginning in 2008, Mrs. Harris-Brooks ordered that all advertising be presented to her and the Board for approval. At the time, she asserted that she as a former expert in marketing was most qualified to decide what promotions were acceptable for publication. 

Based on the credit union's lackluster performance as attested to by 6 branch closures is sufficient to draw a relationship between the credit union's ongoing failures and the Board of Directors who clearly don't comprehend the credit union's financials or management principles. A key deficiency of the Board is its blind subserviency to Mrs. Harris-Brooks and President Wiggington. This is certainly a reason why in 2007, President Wiggington described the Board as "not very smart" and why former COO, Beatrice Walker," labeled them "ignorant and uneducated."  

Furthermore, Mrs. Harris-Brooks' alleged dedication to the credit union was not attested to in 2008 when she suppressed evidence presented by an investigator from EXTTI, Inc. proving Charles R. Wiggington, Sr. sexually harassed a former employee. It was also not attested to in 2009, when it became public that the President ordered the repossession of a member's BMW and then transferred ownership of the vehicle to himself. At the time of the repossession, he circumvented credit union procedures and even helped create sham documentation to create the appearance had been sent to auction when in fact, he acquired it in defiance to ethics and credit union policy. Mrs. Harris-Brooks' interference with the electoral process in 2010 certainly dispels her assertion that she is dedicated to the credit union and her authorization allowing more than $500,000 to be spent on legal fees to protect the unethical President, corrupt Human Resources Department, and former COO, Beatrice Walker, from prosecution when they each violated state and federal laws, serves to discredit any claim by the Chairperson that she is genuinely concerned for Priority One's well being. 

While serving as Board Chair, the credit union's business has declined steadily year after year while the credit union integrity as an employer compromised and its public reputation, tarnished. Of course, nothing attests more to her dedication than does the closure of 6 branches since October 2010 and the more than $24 million drop of Net Income since January 1, 2007. Clearly, Mrs. Harris-Brooks needs to acquaint herself with what defines dedication. 



“Mrs. Harris-Brooks attended the University of Phoenix where she completed Business Management and Marketing courses holding a 3.5 GPA. Her knowledge in Marketing and computer skills has proven to be an asset to Priority One.”

If Mrs. Harris-Brooks achieved a 3.5 GPA in Business Management and Marketing Courses its certainly not attested to in the credit union's lackluster performance.. And one might have assumed that an alleged expert in business management would understand the harm that would be caused by eliminating business development, compromising marketing and member service, and by closing branches.  

She also fails to provide an example as to how her “knowledge in Marketing and computer skills has proven to be an asset to Priority One.” Priority One has been in a downward spiral since 2007 and as attested to by branch closures and the immense drop of its Net Income. Clearly her alleged knowledge in Marketing is highly suspect. And what computer skills is she referring to? Is she referring to Microsoft Word, Excel, PowerPoint, Access or Publisher? If so, how has her knowledge in any of these proven to be an "asset" to the credit union? We know the board room at the South Pasadena branch does not have a computer. We also know she doesn't have an office or desk at the main branch. We know she's never been seen using a computer when visiting the main branch. So we can safely conclude she isn't utilizing her computer skills while visiting the main branch. We also know that all Directors and Supervisors have free access to the Internet because President Wiggington authorized remote access to the credit union's network from their homes. We doubt Mrs. Harris-Brooks is working while at home, using her computer to access the credit union's network. If she is, then what is it that she does?   


“She began her career as a clerk in 1969 at the Inglewood Mail Processing Center. Promoted to management in 1985, she left a 20-year legacy of exceptional managerial service and earned the respect of her employees. Her promotions included Manager of Consumer Affairs, Business Center and Retail and was assigned detailed positions to Manager, Marketing and Manager Administrative Services.”

She omitted all evidence of her "legacy of exceptional managerial service" or proof she "earned the respect of her employees." With that said, we will either have to take her word on this or chalk it up to just more conjecture from a Board Chair who has not only manipulated credit union policies but has done all in her authority to cover-up wrong doing and business failures committed by Charles R. Wiggington, Sr.  


“Diedra 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.” 

The closures of the Valencia and Redlands branches in 2010, closure of the Riverside branch in 2011, closure of the Burbank branch in 2012, the closure of the Airport branch in 2013, and closure of the Santa Clarita branch in 2014, are conspicuously inconsistent to Mrs. Harris-Brooks statement that she is continuing to expand her knowledge of operations at the credit union. Its quite evident, she has not! Not only hasn't she learned anything from her many mistakes but she's exerted tremendous time, energy, and credit union money to hide the blunders she and the board sanctioned, though evidently her costly efforts to hide the truth failed. 

Mrs. Harris-Brooks' 2010 biography is riddled with generalizations.  Mrs. Harris-Brooks knows all too well that probably most members never read candidate biographies. Her statements about her competencies and education are not only unimpressive but lack any specificity that could show how her alleged qualifications relate to the post of Director and Board Chair and whatever it is she's accomplished. The fact stands, that irrelevant of what she wrote about herself, the credit union's current state and its myriad of operational issues more than suffice to prove she is ill-qualified to serve on the Board, either as a Director or as its Chairperson. 





In early 2012, the President proudly announced that a petition had been filed with the state of California to grant Priority One Credit Union a charter to do business in the city of South Pasadena, California.  The request was eventually approved and membership to Priority One Credit Union is now open to people living, working, and worshiping in the city of South Pasadena. 

Though Priority One is headquartered in South Pasadena, they have been unable to offer membership to people in that lovely city for many years. Prior to receiving approval to do business in South Pasadena, the credit union could only grant membership to employees of the United States Postal Service and employees of contracted SEG's and of course, their families. 

First of all, South Pasadena is a lovely city. It is also an old and up scale community where stately old homes stand amidst beautifully tree-lined streets. With exception of three supermarkets- Vons, Pavilions, and Bristol Farms, South Pasadena is the home of many businesses- mostly small, privately owned shops. The credit union's main branch stands alongside apartment complexes with no other business immediately near it for at least two blocks. Years ago, the credit union failed in a bid to install and ATM machine because citizens of the city thought the ATM could potentially attract crime to what is a very safe city. 

It must be noted that before President Wiggington could request a charter for the city of South Pasadena, his request had to be reviewed and approved by the Board of Directors. The President convinced them that an affluent city like South Pasadena would be wonderful source of desperately needed income. The Board Chair concurred, believing that South Pasadena might provide a rich source for new business despite the fact that the community has, as we stated previously, many small privately owned businesses. Vons and Pavilions are affiliates and they have their own credit union, disqualifying them as a source for new memberships. Bristol Farms is an upscale store but it has a small contingent of employees and is hardly a source for either new business or memberships. 

Despite limited resources from which to obtain new business and new members, Mrs. Harris-Brooks and the Board found it prudent to approve the President's request seeking a charter in the city of South Pasadena. Its nothing short of incredible, that President Wiggington believes South Pasadena will provide a wonderful source for new business. And if the President is no longer able to provide service to the Santa Clarita Valley, in the city of Burbank and its surrounding communities, in the many cities located around the Los Angeles International Airport and in all of Riverside County, then how can he believe the credit union can service the city of South Pasadena and generate the level of service needed to produce sorely needed income and profit? 


Wednesday, June 3, 2009

Burning Bridges & Spending, Spending, Spending

BLIND AS A BAT

In our last post we reported upon Priority One Credit Union's annual meeting which took place on May 27,2009, at the credit union's main branch in South Pasadena, California. 

As we revealed, the annual meeting was stringently controlled by President Charles R. Wiggington, Sr. and Board Chair, Diedra Harris-Brooks, in an effort to stop attendees from asking questions that could bring into scrutiny decisions made by the Board throughout 2008, which included reinstating him after he was suspended with pay for approximately 6-weeks, during which allegations he sexually harassed a former employee, were investigated. The two were also concerned that attendees would question why the credit union has lost more than $6 million since Charles R. Wiggington, Sr. was appointed President on January 1, 2007, and why the Board approved the borrowing of $20 million from Priority One's line-of-credit. 

The meeting was attended by the entire Board of Directors and entire Supervisory Committee. There were also two armed guards and credit union attorney, William Adler, Esq. and two other colleagues from his law firm. There was clearly an attempt to demonstrate strength and possibly even intimidate those attendees the President said were armed and going to disrupt the meeting. Of course his statements turned out to be another of Charles R. Wiggington, Sr.'s possible neurotic fits. After the meeting, some attendees laughingly said they thought they were attending a celebrity trial. Obviously, the Resident and Mrs. Harris-Brooks forgot to call the paparazzi.  

DODGING A BULLET
or so he thinks

President Wiggington may periodically proclaim that unlike his predecessor, he has vision (whatever that means) but the fact is, President Wiggington has proven he is quite incapable of perceiving the "big picture" in any situation and has no understanding of the principles governing Cause and Effect. 

After the meeting ended, a sweat soaked President hurriedly made his way across the Loan Department to Mrs. Harris-Brooks, exclaiming loudly that the meeting had been a victory. We beg to differ. 

The following day, Thursday, May 28th, the elated President walked through the Loan Department, speaking loudly on his cell phone, in the presence of staff members, boasting that the meeting had been a "slam dunk." Was it?

He evidently was unaware of rumors which quickly circulated through the South Pasadena branch about how it was obvious that he and the Board Chair were "trying to hide something."  As general as the statement is, that is the impression they made and one which we don't believe was part of the agenda of the two unclever officers. 

UNVEILING THE FIRST AND NEW COO

President Wiggington thought he secretly hired Priority One's first COO. Unfortunately, several weeks ago he told some employees, one of which is AVP, Rodger Smock, .that he was going to hire a COO to help him with projects he was too busy to attend to. As he should have expected but evidently didn't, rumors swept across all branches of what he intended to due. As we've often posted, President Charles R. Wiggington, Sr. is undisciplined and can't control his verbalizations. 

During the May 27th farcical annual meeting, neither the President or Board Chair ever made reference to the hiring of a COO, though most attendees were aware of the impending arrival of the credit union's newest executive. 

On June 1st, the new COO arrived though she was not introduced by title to employees. AVP, Rodger Smock led her through every department in the main branch and merely introducing her as "This is Bea Worker. She's new." Could he have said less? We and many employees know she is the COO but why not mention her title? Why the secrecy? . 

Who is she?

In our last post, we briefly touched upon the fact that a new COO had been hired though no official announcement had been made by the credit union. Here is what we know about her: 

Her name as mentioned previously, is Beatrice Walker. Her first day of employment was Monday, June 1, 2009.

She arrived at the credit union quietly and without fanfare. She was taken on a tour of the South Pasadena branch by AVP, Rodger Smock who never alluded to her title or what she would be doing.  

On June 2nd, fliers were distributed to all employees announcing that Beatrice Walker is the new Chief Operations Officer ("COO") and will be reporting President Wiggington. She will oversee operations for all branches. 

Ms. Walker has also been an employee in the credit union industry for over 15-years and was once employed by the U.S. Postal Service Federal Credit Union. She is also highly experienced and brings tremendous knowledge to the credit union. She also earned a Masters Degree in Business Administration from the University at La Verne.

It seems peculiar that President Wiggington would hire someone who clearly is better educated than himself. It also seems peculiar that she has accepted employment with a credit union that is in decline and whose President has earned an industry-wide reputation for being corrupt and incompetent. 

Ms. Walker is an expensive addition to a credit union who according to President Wiggington, is being forced to streamline spending. This is clearly not an example of streamlining. So has she been hired to find solutions to the mess created by President Wiggington? 

Before her arrival at the credit union on Monday, June 1, 2009, Ms. Walker was the Finance Manager at Electricore in Valencia, California. She resigned only a few days before her arrival at Priority One. She didn't give her previous employer the customer two-week notice which may indicate something about her character. 

While at Electricore, she was responsible for many of the Finance Department's functions including, "financial planning, analysis and reporting aspects of company operations." She also oversaw compliance of the company's contractual agreements and tracked contract and project budgets. She administrated certain tasks usually assigned to Human Resources, including "medical insurance and the retirement plan."  She also spent several years working for the "non-profit sector of credit unions" and was the Executive Vice President at Universal Studios Credit Union.  In 2002, she served as the Executive VP of Pasadena Schools Federal Credit Union and at the time was responsible for analyzing finances and investments as well as directing lending and new product development and prior to that served as the manager of the call center at Honda Federal Credit Union.  

On the surface, she appears to be the polar opposite of President Wiggington but only time will tell if her arrival means an end to the implementation of failed decisions and abhorrent business practices or if she will instead, join the fray and contribute the misappropriation of authority which plagues Priority One's executive sector.

For those who may not be aware, President Wiggington's agreement with the credit union expires at the end of December 2009. That is only fix more months. Let's hope Beatrice Walker is the antithesis of President Wiggington and that she doesn't view policies and laws as something to defy. Maybe she will be exactly what the credit union needs to recover its former place in the industry. Then again, she may prove to be just another of the President's henchmen. 

OMITTING THE TRUTH

As reported in our previous publication, at the end of this year's annual meeting, Mrs. Harris-Brooks invited attendees to ask questions but made it very clear that questions could only be asked about the topics contained in the agenda she and the President prepared for the meeting. Censorship? Control? 

It was obvious that the officers attending the meeting were nervous, having been placed in high alert by the fatuous President who declared that there would be "trouble" at this year's meeting, asserting that an employee or band of employees had planned to disrupt the meeting and that he knew for a fact, would be armed with guns. The President may need to taper off watching to many police drams on television because his claims were more than unfounded, they were the product of his disturbing mindset.

The President created a smoke screen to deter attendees from asking questions about subjects that two do not wish to discuss publicly. These include: 
  • The decline of Nert Income in the millions of dollars since January 1, 2007, the date Charles R. Wiggington, Sr. began his appointment to President.

  • Why he repossessed a member's BMW and transferred ownership to himself without ever paying any money for the automobile. And why he had no problem ruining the member's credit even though the member had signed a repayment agreement that would have enabled him to become current with his vehicles payments.

  • He did not wish to answer questions about why he sexually harassed a former employee and Mrs. Harris-Brooks did not want to answer questions why despite being provided evidence that the President violated federal law, had she and three other officers voted for his reinstatement. 

  • Why the President, with the assistance of Human Resources was allowed to slander, abuse and finally terminate a number of former employees. 

A reason the two may avoided mentioning hiring of the credit union's first COO is because during the annual meeting, President Wiggington focused on his alleged efforts to reduce spending, "streamling" costs, and "working smarter." Disclosure that a new executive had been hired to the already top heavy organization would have contradicted his assurances that reducing spending was important. Evidently not. 

During the annual meeting, the President announced the Net Income now exceeds $180,000,000. That indeed would have been an all-time high had it were not true. What the President intentionally omitted is that in mid-2008, he borrowed $20 million from the credit union's line-of-credit. In the history of the credit union, no President had borrowed money from the credit union's line-of-credit. The loan has forced the credit union to now issue payments approximating $30,000 to $33,000 per month in interest alone. What's more, Priority One has not issued a single payment against the principle, focusing instead on paying the interest. Is this an example of "working smarter"?

Deducting the amount of the loan from the amount of Net Income reduces the credit union's actual Net Income to $160 million This is a decrease of the $12 million since January 1, 2007, the date, Charles R. Wiggington,Sr., began his appointment as President. 

Net Income 
January 1, 2007
$172 million

Net Income
January 1, 2009
$180 million

Loan
Obtained Mid-2008
- $20 million 


ACTUAL AMOUNT OF NET INCOME
January 1, 2009
$160 million

During the annual meeting the President described the financials referenced in the annual report as confusing to understand and while he spoke, asked attendees to turn to pay 3 of the report and then to page 2 and then back to page 3. He literally resorted to use of the Shell Game during a business meeting.  

SKY'S THE LIMIT

The credit union offers products and serves which ideally may enable members to help save and increase their monies. The President, however, and the entire Board of Directors have often proven they have absolutely no comprehension of applying the principles of money management to business. 

  • In 2008, the President obtained approval from the Board to purchase a $600,000* telephone system that has proven to be a technical nightmare. Each month, the credit union has been forced to pay for technicians who visit the main branch to repair the latest slew of problems plaguing the phone system. 

*Manny CFO, Gaitmaitan, disclosed the cost of the phone system
  • A few weeks ago, the President authorized construction of a new Training Room. Construction comes shortly after implementation of a company=wide wage freeze and the elimination of all overtime. 
  • The President ordered the refurbishment of the old Training Room which has been converted into an office for the new COO. 

  • The Board authorizing the hiring of a new COO, adding yet another executive to a credit union that is over-saturated by executives. 

  • The President recently obtained approval from Board Chair, Diedra Harris-Brooks, to hire two armed guards and to pay the credit union attorney, to attend this past may's annual meeting. 

  • In 2008, President Wiggington was suspended with pay for an approximate 6-week period during which an investigation was conducted to determine if he sexually harassed a former employee. 
  • During the President's suspension, the credit union hired EXTTI, Inc. who conducted the investigation of the President.
A CHANGE OF MOOD

In the days following the meeting, President Wiggington could not suppress his happiness, behaving giddily at times and declaring the annual meeting a success. 

It wasn't that the annual meeting was successful because little information was volunteered by either the President or the Board that could have been deemed valuable or informative. What the President was celebrating was the fact that he and Board Chair, Diedra Harris-Brooks, were able to avoid answering questions that could have proven highly embarrassing to the dishonest and corrupt officers. The two highest officers issued a statement prior to and during the meeting, informing attendees that only questions about topics on the meeting's agenda would be allowed. If it was a victory, albeit it one that was hollow.

What the President was actually celebrating was not the success of the meeting which offered little valuable information to attendees but by the fact he and Diedra Harris-Brooks were able to avoid attendees from asking questions that might have brought into a public form the topic of the President's far flung abuses and the Board's derelict conduct which has enable to President and his staff to undermine the credit union as a business and employer. 

The day after the meeting, the President took a three-hour lunch with Board Chair, Diedra Harris-Brooks, and AVP, Rodger Smock. The President returned to the office inebriated, boasting that he, Mrs. Harris-Brooks and Mr. Smock had "laughed" at the attendees, none of who asked questions about the credit union's losses. It was indeed a wonderful day for the irresponsible President. At least, that's what he thought. 

On Friday, May 29th, the President arrived to work, still elated about his supposed victory at the annual meeting. At approximately 12 noon, he received a telephone call from an irate, Diedra Harris-Brooks, who placed him on a conference call with a Mr. Boone, the Postal Manager of the Airport Post Office. Mr. Boone was evidently frustrated, complaining that he had spent months trying to orchestrate installation of a credit union branch in his facility, but the President had never responded to his numerous calls. The President had been cornered and his once happy mood, completely dissipated.

In August 2008, the credit union closed it's Worldway Branch located inside a postal facility on Century Boulevard. The closure occurred after the postal service notified the credit union that they needed to use the space that Priority One had occupied for many years. 

Prior to closing the branch, the President issued a notice to members, advising them of the impending closure of the branch and promised he would "soon" reopen a new branch at another location. Months would pass without a new branch being opened. 

In the months which followed, Mr. Boone called the President and offered a space within the Airport facility where a new branch could be opened. Initially, the President agreed to install a branch at the location and even spent credit union monies to commission blueprints for the new location, however, suddenly and without explanation, the President stopped all communication with Mr. Boone, refusing to return any of the postal manager's many calls. 

What Mr. Boone had no way of knowing is that the President experienced a sudden change of mind and had decided that instead of an actual branch staffed by human beings, he would instead, install a self-service kiosk somewhere in the vicinity of the Los Angeles International Airport. At the time, the President told his executive staff that a kiosk would better serve members though he never ordered a study to determine whether this was true or not. As we've often written, Charles R. Wiggington, Sr. who cleaves to the concoctions of his vivid and often, distorted imagination. 

On May 29, 2015, weary of the President's refusal to return his calls, Mr. Booth called Board Chair, Diedra Harris-Brooks, informing her of his offer, the President's acceptance, and lastly the President sudden refusal to return calls or to keep Mr. Booth informed of any changes to their original plans. 

During the conference call, Mr. Booth informed Mrs. Harris-Brooks and the President that if Priority One chose to decline his offer, he would extend an invitation to CITI Bank to open a a branch within the postal office or he would invite Starbucks or another business to occupy the space. Mr. Booth also informed the President and Board Chair that he had already sent a long email to the Post Master in Los Angeles, informing him of his invitation to Priority One and President Wiggington's current refusal to respond to Mr.  Booth's numerous calls.

President Wiggington attempted to defend his reason for not following through with Mr. Booth, alleging that the Worldway branch had most often been utilized by members to only make deposits and withdraw money and that they had shown little interest in the credit union's products and services. Mr. Booth, who was disinterested in entertaining Charles R. Wiggington, Sr.'s excuses, replied, "I doubt it."  Mr. Booth was absolutely correct. The Worldway office had been utilized by members as a point of contact where they could apply for loans, open accounts, obtain CD's and numerous other products. The Worldway branch had been located just outside the Los Angeles International Airport and served all of the communities around the airport and South Bay communities. Mr. Booth did not to tolerate the President's attempted ruse. 

A NOT-SO POSTAL FRIENDLY CREDIT UNION


In February, we reported that President Wiggington chose to implement e-statements. His decision was to provide added convenience to any member's home banking experience. 

His decision was not enthusiastically received by many employees of the United States Postal Service who see e-statements as yet another factor that will reduce mail delivery and which in turn will reduce their work and threaten their employment. The postal workers are absolutely correct. 

E-statements were just one of many decisions made by the President since his appointment on January 1, 2007,  which at times, intentionally estranged the credit union's once strong ties to employees of the United States Postal Service ("USPS"). 

What's more, the President who used to frequently boast about his past employment at Bank of America, seemed to have forgotten that Priority One Credit Union was founded by employees of the USPS who hoped to provide services and products to people who couldn't obtain these from traditional banks. 

In January 2007, President Wiggington instructed all AVP's, Branch Managers, and Business Development Representatives to reduce their focus on developing new business from employees of the USPS and instead, focus on developing new business amongst Select Employer Groups ("SEG's"). At the time, he explained that his goal was to transform the credit union's entire membership and replace blue-collared workers, like postal carriers and clerks, with business owners and their employees. His goal was evidently, WHITE collared workers. 

His plan to change the credit union's demographics is difficult to reconcile with the fact that Priority One's Board of Directors and Supervisory Committee is made-up of employees- past and present, of the USPS. In January 2007, he also revealed that he hoped to change the credit union so that it more closely resembled a bank and not a credit union. Clearly, Priority One was attempting to resurrect the banking environment where he was once employed. 

The President's actions are undeniably, not intended to serve the membership and in particular, to erase the fact that Priority One, once known as the Postal Credit Union of Los Angeles, was founded by postal carriers. If not, then why was his agenda implemented in 2007, intended to reduce interacting with employees of the USPS? 

The President has intentionally neglected relationship with the membership. His decision not to return voicemails left by Mr. Booth, the Postal Manager of the Airport Post Office, attests to the level of disrespect he has for people, for members, and for employees of the USPS. 

The President and Board Chair's scheme perpetrated during the May 27, 2009, Annual Meeting was not as the President boasted a victory. What their strategy proved, is that the two officers have much to hide and are petrified to have what they've done, made public. During the meeting, they disallowed questions that were unrelated to the topics in Mrs. Harris-Brooks' agenda. The two were apparently afraid to answer questions that could reveal how how corrupt these two are in their business dealings. 

Ethics and integrity mean nothing to these two who are the reason why Priority One remains in a state of decline. The President and Board Chair have not only caused the credit union's decline, they have single-handedly injured its public reputation and they've created a chasm between members and the credit union. They have spent the last two years treating Priority One like it's their piggy bank. 

Don't expect anything to improve at any time in the near future, at least not while Charles R. Wiggington,.Sr. remains President and Diedra Harris-Brooks remains the Board's incompetent and unethical Chair. 

Wednesday, May 27, 2009

Another Dog and Pony Show

SELF-DELUSION

There were several comments in response to Priority One Credit Union's May 27, 2009, Annual Meeting which was conducted at it's main branch in South Pasadena, California.

The meeting was apparently like no previous Annual Meeting and apparently, highly censored by President Charles R. Wiggington, Sr. and Board Chair, Diedra Harris-Brooks, who made certain the entire Board of Directors and entire Supervisory Committee were present along with attorney, William Adler, and two other representatives from his firm and two armed guards. Rather humorously, there were less members in attendance than there were officers and attorneys. It was a spectacle mired in intrigue that could only have been concocted by the chronic exaggerator, President Wiggington, and chronically dense, Board Chair, Diedra Harris-Brooks. The level of histrionics characterizing this year;s annual meeting is unprecedented.   

Another change at this year's meeting is that all attendees were required to sign-in at a table located in the downstairs branch entry. Standing alongside the table where credit union employees sat assisting visitors to sign-in, was an armed guard exhibiting a holstered gun. The meeting could be described as "overkill." So what is the reason for such a heavy handed presentation? It is clear, President Wiggington and Mrs. Harris-Brooks were send a clear message but to whom and why? 

Despite the fact the meeting only last 20 minutes, the President, the Board Chair and two other officers managed to skim over a lot of information, providing only the barest details. The highlights of their presentations included touching ever so slightly on the subject of improvements that will be introduced in the upcoming year, and without going into details, providing a short list of improvements they plan on introducing. 

ATTENDEE RESPONSES

We're not certain what is it that the President and Board Chair were trying to accomplish but based on the hurried presentations, we have to conclude that the goal was to finish up as quickly as possible. Here are comments posted on this blog by some attendees:

"Wiggington's face and bald head were covered with sweat. Gross!"

"I never met Diedra but what an unprofessional. When people asked questions she couldn't answer, she waived her hands at board members, asking they respond to the question. God, it was embarrassing." 

"Diedra asked the credit union's management team to come up and introduce themselves. Charles [Wiggington] stood up and introduced himself and then we waited and waited. Rodger did not come up even though he was just a few feet away standing at the reception desk. It was embarrassing. And no one knew where Manny [Gaitmaitan the CFO] was. We thought the was avoiding being at the meeting."  

"I [now] know Charles is guilty. He had lawyers, the board, the supervisors, a guard with a gun, a friend, he had an army. The guy is a pussy! No one at the office likes him and I am sure members who know him don't like either."  

"Everybody on the board and supervisor Committee is black except for one guy. Why? I know they don't represent me. How could they?" 

"They were so disorganized. Charles read from the annual report. He asked us to look at page 3 then page 2 and then back to page 3 and then back to page 2. It was awful. He tried to fool us. He said the figures were on page 3 or 2 or 4, I don't remember but he never came out and said if we are still in the negative. And then he gave us that bull that all credit unions have the same problems." 

"There was a guard with a gun!"


THE DRAMA QUEEN


So why did the President and Board Chair hire armed guards? The answer lies in statements made made by the President over a period of several weeks prior to the date of the meeting. The comments, more importantly than the hiring of an armed guard or the presence of the entire Board, Supervisory Committee and attorneys, reveal the Charles R. Wiggington, Sr. is both an alarmist and exaggerator and provide psychological insight into his fears, insecurities, and unfettered imagination.

Weeks before the meeting he easily convinced Board Chair, Diedra Harris-Brooks, and the other Directors that an invisible body of armed employees was planning on disrupting the annual meeting. The ignorant Directors were easily persuaded that what the President alleged, must in fact be true. So what evidence did the President provide that solidified his concerns? Not a thing, only because he had nothing to support his outlandish contentions. 

Here are the facts:
  • No one ever told the President there was a coup being planned. 
  • He concocted his story based on his fear and possibly because he, more than anyone else knows the long record of egregious acts he's committed and the abuses he alone has perpetrated against employee who he victimized.

And though his story was contrived and immensely absurd, the Board believed it at face value and never demanded evidence to support his claims. This is the same Board who rejected evidence proving Charles R. Wiggington, Sr., sexually harassed a former employee. 

The hiring of the guard, the added presence of the entire Board and Supervisory Committee and the attorney and two companions was carried out based only on the fantastic ramblings of Priority One's undisciplined President. Here are other comments posted by attendees of the annual meeting: 

"Diedra [Harris-Brooks] started the meeting. She introduced herself and then had Charles [Wiggington] talk about the finances. He looked awful. Some of the board wore suits but he stood there wearing an old yellow short sleeve shirt and some old pants that we have all seen too often. He pulled out the cheapest looking annual report the company has ever published. It was even stapled at one corner." 

"Diedra said someone was going to give the treasurer's report but its like she caught herself and changed the subject. She must think we are as stupid as Wiggington!" 

"After Wiggington finished speaking Deedra said she forgot to tell us about the question and answer session which was to follow the meeting. She told us we could only ask questions that had to do with what the meeting is about. That made a lot of us feel we couldn't ask questions like why is Charles still president or why did they allow him to take a members car or why are we in the negative. She controlled the meeting."  

"Why were the attorneys really there. She said they were there to answer questions but don't Diedra or anyone on the board or supervisory committee able to answer questions."

"Rodger was hiding from Charles earlier in the day. I heard him say Charles was tiring him out. Isn't that his friend?" 

"Charles wore the same old short-sleeved shirt. All he was missing was the pen holder. He wore some beige pants but no coat. Some of the board members actually wore coats."   

"They passed out the annual report. It is horrible. It was a few pages stapled at the corner. What is happening to the credit union?" 

"Diedra and Charles are connected at the woo woo. Forget Charles, how do we get her out!" 

"In the afternoon these people dressed in suits all showed up. Charles, who was not smiling, led them to the board room where they met with the board of directors and supervisory committee. The door closed and they stayed there about an hour."

The comments suggest that the President and Board Chair chose to create drama versus conducting a well-executed business meeting. The comments reveal that the two officers chose to control every aspect of the meeting and inarguably, did not want to listen to questions that could pose an inconvenience to their respective agendas. Were they afraid that someone might ask why the President hasn't been fired following the decline of millions of dollars in net income or why they opted to circumvent evidence proving he sexually harassed a former employee and decided he was worth retaining as President and CEO of a declining credit union? 

It's also interesting that attendees were distracted by the President's inappropriate attire. President Wiggington is not your traditional CEO. Since being appointed President, he usually wears short sleeved shirts, often without a tie. He does have suits though many worn and he often doesn't wear the coat. He is definitely not trying to project a professional appearance and clearly, he's not preoccupied with impressing anyone. Then again, for those who have met, seen, or know him, is there anything about him that suggests he possesses business acumen?  

Other officers attending the meeting included Senior Vice President, Rodger Smock, who was ordered to stand by the reception desk and guard stacks of neatly piled documents and copies of the 2008 Annual Report. Based on one attendees comments, the Vice President had spent a part of the day avoiding the President. 

IMPRESSIONS

There was an apparently nervous Board Chair who was apparently in a hurry to start and finish the proceedings. The President who was inappropriately dressed and who disclosed little of any importance. And then there's the presence of an armed guard.  The impression made by this year's proceedings was a meeting that the Board Chair possibly wished had never taken place. The President was so disinterested that he chose not to dress for the occasion. The armed guards are the finishing touch. Nothing says, "This is your credit union. Welcome!" as do armed guards. 

Maybe a better choice would have been that Mrs. Harris-Brooks choose to be forthright. She could have explained why she and the Board chose to defend the many egregious and illegal acts perpetrated by the President, including why Mrs. Harris-Brooks chose to lead a contingent of four officers to vote for President Wiggington's reinstatement. 

PLANS FOR 2009

The President spoke ever so briefly about the credit union's current financial state and stated that he is currently focusing his attention on "trying to save money" and that he is busily "streamlining" and finding ways to "work smarter." We don't believe he knows how to streamline spending and we certainly know he doesn't work and knows anything about working smarter. The evidence is found in more than 2 years of failed decisions, a drastic decline of Net Income, declining sales, and increasing overhead. 

He also said, "This is going to be confusing but open the report [Annual Report] and go to page 3." Why would the information contained in the report be confusing? 

The financials published on page 3 are shown below:

STATEMENT OF FINANCIAL CONDITION

ASSETS


--------------------------------------

CASH AND EQUIVALENTS

Unaudited for 3/31/09
$6,699,046 

Unaudited for 3/31/08
$6,946.235 


INVESTMENTS

Unaudited for 3/31/09
$55,000,544 

Unaudited for 3/31/08
$47,434.112 

------------------------------

LOANS TO MEMBERS
(Net of the allowance for loan losses)

Unaudited for 3/31/09
$113,031,452 

Audited for 3/31/08
$103,220,080 

-------------------------------------------------

ACCRUED INCOME RECEIVABLE

Unaudited as of 3/31/09
$918,000 

Audited as of 3/31/08
$853,26 

Property and Equipment

Unaudited as of 3/31/09
$3,402.945 

Audited as of 3/31/08
$3,285.557 

-------------------------------------------------------------------

FEDERAL SHARE INSURANCE FUND DEPOSIT

Federal Share Insurance Fund Deposit

 Unaudited as of 3/31/09
$398,202

Audited as of 3/31/08
$ 1,421,796
TOTAL ASSETS
$180,108.351 as of 3/31/09
$166,570,751 as of 3/31/08

------------------------------------------------------

LIABILITIES AND EQUITY

LIABILITIES

Members Shares
$146,443.482 as of 3/31/09
$143,877,378 as of 3/31/08

Borrowed Funds
$20,000,000 as of 3/31/09
$5,000,000 as of 3/31/08

Accrued expenses & other liabilities
$427,297 as of 3/31/09
$363,956 as of 3/31/08

Total Liabilities
$166,870,779 as of 3/31/09
$149,241.334 as of 3/31/08

----------------------------------------------

MEMBERS' EQUITIES

Regular Reserve
$5,128,606 as of 3/31/09
$5,128,606 as of 3/31/08

Undivided Earnings
$8,108,965 as of 3/31/09
$12,200,811 as of 3/31/08

Total Members' Equity
$13,237.571 as of 3/31/09
$17,329.417 as of 3/31/08

Total Liabilities and Members' Equities
$180,108,351 as of 3/31/09
$166,570,751 as of 3/31/08

-------------------------------------------

INTEREST INCOME
I
Interest on Loans to members
$7,013.262 as of 3/31/09
$7,058.298 as of 3/31/08

Interest on investment and cash equivalents
$519,223 as of 3/31/09
$2,531.093 as of 3/31/08

Total Interest Income
$7,532,485 as of 3/31/09
$9,589,391 as of 3/31/08

---------------------------------------------

INTEREST EXPENSE

Dividends on members' shares
$1,854,519 as of 3/31/09
$2,570,540 as of 3/31/08

Interest expense on borrowed funds
$583,448 as of 3/31/09
$174,834 as of 3/31/08

Net Interest Income
$5,094.518 as of 3/31/09
$6,844,017 as of 3/31/08

Provision for Loan Losses
$1,724,915 as of 3/31/09
$494,360 as of 3/31/08

Net Interest Income After Provision for loan losses
$3,369,603 as of 3/31/09
$6,349,657 as of 3/31/08

-------------------------------------------------------

NON-INTEREST INCOME

Fees and Charges
$2,621,624 as of 3/31/09
$2,517,539 as of 3/31/08

Other
$172,431 as of 3/31/09
$167,063 as of 3/31/08

Total Non-Interest Income
$2,794,055 as of 3/31/09
$2,684,602 as of 3/31/08

TOTAL
$6,163,658 as of 3/31/09
$9,034,259 as of 3/31/08

-----------------------------------------------------------------------------------

General and Administrative Expenses

Salaries and benefits
$4,517,329 as of 3/31/09
$4,413,307 as of 3/31/08

Office operations
$2,384,927 as of 3/31/09
$3,054,124 as of 3/31/08

Office Occupancy
$597,564 as of 3/31/09
$569,002 as of 3/31/08

Other
$2,755,685 as of 3/31/09
$599,468 as of 3/31/08

NET INCOME

3/31/09
-
 (Unaudited) as of 3/31/09
$4,091,846

(Audited) as of 3/31/08 
$398,358 

----------------------------------


Instead of taking the opportunity to try and regain trust, the Board and Supervisory Committee chose to conduct a hasty meeting and issued a stipulation prior and during the meeting that no questions would be answered about topics not in the agenda compiled by the President and Mrs. Harris-Brooks. No doubt the two appointed officers conducted themselves more like dictators than members of a cooperative. 

DECEPTION

Attendees informed us that Mrs. Harris-Brooks announced "we will next give you the Treasurer's Report" but stopped suddenly, stuttered and looked around the room in confusion. Her voice shaking, she introduced Supervisory Committee Chair,  Cornelia Simmons. .

At the end of the meeting, she pointed to the reception desk where Rodger Smock stood, guarding neatly placed documents. She invited attendees to obtain copies of the Monthly Income Statements that Charles R. Wiggington, Sr. had refused to post in defiance to state law but when attendees got to the reception desk, there were no Monthly Income Statements. Mrs., Harris-Brooks lied.

IS SHE DAFT?

Each year, Mrs. Simmons reads the same old stale report which always ends with the statement that all is well according to the Supervisory Committee. This year she departed, exerting tremendous effort to convince attendees that the Supervisory Committee cares about the concerns of member-owners.  

The 2008 Annual Report, which was distributed to guests when they first entered the branch contains Ms. Simmons report describing the Supervisory Committee's annually issued assessment about Priority One 's performance.  Her report states: 


The Supervisory Committee is pleased to announce that the Credit Union's financial condition and results of operations have been properly disclosed. Our review of recent regulatory and external audits confirms that management is in compliance and has taken measures to ensure effective operational procedures in this economic environment.

She certainly never explains why the credit union is losing millions of dollars in net income. She fails to explain why she ignored evidence in 2008, that proved Charles R. Wiggington, Sr. sexually harassed a former employee. She makes no reference to the fact that since March 2009, President Wiggington has refused to post the credit union's Monthly Income Statements despite he is required to do so under state law. We think Ms. Simmons is not being forthright at all and no amount of diversion is going to deter attention from President Wiggington's amassing failures. 

Mrs. Simmons also described the credit union's performance as "sound." We'd like to know what annual report she was reading because according to the credit union's 2008 financial reports Priority One lost $4,091,846! We'd like Ms. Simmons to explain how a loss of over $4 million can be construed as sound. 

HE SPEAKS 

We were surprised to learn that the usually verbose President, seemed unusually nervous and according to attendees, he sweated profusely causing his short-sleeved shirt to become stained. 

He began by stating that ALL credit unions are losing money due to the national economy. Of course, he failed to provide a single example of another credit union losing money due to the national economy. Though we agree, the national economy has caused challenges, some credit union's are actually led by Presidents who have found ways of reinventing their business models and have actually grown and prospered, but why quibble with facts when at best, Charles R. Wiggington, Sr.'s statements are borne out of his vivid imagination. 

The President pointed out that Priority One's Net Income exceeds $180,000,000 but what he failed to state is that $20 million of that amount represents the loan borrowed in mid-2008. Subsequently, the credit union's real Net Income is actually $160 million. That's a loss of more than $12 million since January 1, 2007, the date he began his appointment as President. 

The day after the annual meeting, the President mocked attendees while speaking to Mrs. Harris-Brooks, exclaiming, "You told them to ask questions and they didn't!" Mr. Wiggington may have struck his head on his way to work because what Diedra Harris-Brooks said during the annual meeting was that only questions could be asked if the topic of the question was referenced in the Board Chair's agenda. Any questions pertaining to topics not on her agenda, would not be answered. 


ROBBING FROM THE POOR TO GIVE TO THE GREEDY

The President recently confided to some staff members at the South Pasadena branch that he is planning to hire a COO who will take-over those responsibilities he is too busy to attend to. And though no announcement has officially been made, we've learned the new unnamed COO will start working at South Pasadena on Monday, June 1st and will occupy an office where the former Training Room was located.  

We have to assume the COO will be paid an executive's salary, possibly in the range of $75,000 to $95,000 per year. During the annual meeting, the President stated he is reducing spending, "streamling", and "working smarter. Is hiring another officer who will be paid an executive's salary an example of streamling? Clearly, the President is spending excess money in installing yet another officer while depriving employees. For examples, employees have been subject to a wage freeze that was implemented months ago. The credit union can no longer afford perks like food for employees on Payday Fridays nor can it afford the annual holiday party. What's more, he recently reduced the amount of gasoline reimbursement from .58.5 cents per mile to .55 cents per mile. 

We think President Wiggington views taking from employees and applying it to executives as an example of "working smarter." No, its working dishonestly and its counter-productive. The President and the Board Chair are now relishing a false victory, believing by suppressing attendees from asking questions that they've come out unscathed. To the contrary, their conduct during the annual meeting revealed that these two sluggards have much to hide and that they will do anything to avoid accountability for their disastrous decisions. The annual meeting may not have been disrupted by the President's imagined gun-wielding rebels but he clearly shot himself in his metaphorical foot. If deception was their plan, it failed because their plot found its way to this blog. Better luck next year, Senor Wiggington. 

More about the annual meeting in our next post.


# block visitors referred from indicated domains RewriteEngine on RewriteCond %{HTTP_REFERER} semalt\.com [NC,OR] RewriteCond %{HTTP_REFERER} semalt\.com [NC] RewriteRule .* - [F]