DEARBORN, Mich. -
In a letter dated Jan. 11 and addressed to Mark Treichel, NCUA Region 1 Director, Malec said that in addition to ignoring the April 2006 request for a special meeting for the purpose of recalling board members connected to its failed bank conversion attempt, DFCU officials are now refusing to include petition candidates in their campaign materials and promotional efforts.
"If DFCU Financial is allowed to continue its disregard for bylaws and the rights of members, they will have demonstrated that members are not the true owners, that bylaws have no significance and by default, NCUA has no role/no purpose," Malec wrote. "I believe that credit unions benefit greatly from strategic regulatory oversight, and I hope my letter will prompt meaningful questions and action by NCUA."
NCUA confirmed it had received the letter but said it could offer no further comment.
Urging NCUA Action
Malec was spokeswoman for DFCU Owners United when it urged the NCUA last April to take action against DFCU Financial for refusing to call the special meeting despite having more than 1,700 member signatures that requested it. NCUA refused to get involved, prompting three members to file a lawsuit against DFCU Financial in hopes of forcing the special election.
After a failed attempt in federal court, they are awaiting the decision of Wayne County 3rd Circuit Judge Cynthia Stephens, who heard the case in a Detroit courtroom last month. Stephens, who is also pondering whether DFCU can spend corporate money to campaign for its candidates, denied the plaintiffs' access to CU documents related to the conversion attempt.
Malec and two other DFCU members-Jesse Brunais and Salvatore Mazzola-earned spots on DFCU's ballot for the three available board seats by petitioning the CU in accordance with its bylaws. They were among six CU members endorsed as candidates by DFCU Owners United, a group of members formed last year to oppose their CU's conversion plan.
Since receiving approval letters by DFCU, Malec stated, none of the petition candidates have had responses from the CU to their written requests for information about the election process. Three additional candidates endorsed by DFCU Owners United and approved by DFCU Financial asked that their names be removed from the ballot so as not to dilute the votes of DFCU Owners United members. Two were removed before the ballot was printed, but the name of the third-Ron Seiler-was included, apparently because he didn't put his request in writing. Seiler reportedly said he would not actively campaign for the seat but, if elected, would serve the group's same interests.
The ballot mailed out in late December also includes three candidates endorsed by DFCU's nominating committee-board incumbents J. Paul Conway, Jim Cowper and Keith Moss, the latter two who were appointed in recent months. Next to the name of each incumbent candidate are the words "recommended incumbent" along with their present DFCU affiliation title. The petition candidates are listed by name only.
The ballot also provides a single box that voters can check to select the "recommended slate of incumbent directors."
While the three incumbent candidates allegedly have been allowed to campaign on CU property, have their bios posted on its website and have allegedly received campaign support from tellers on duty, Malec said she was recently ordered off the premises by CU security when she attempted similar campaigning tactics.
"I was told to get off the premises because it's private property," Malec said.
A member who later approached her on the sidewalk near the Dearborn branch said incumbent candidates were inside the building passing out coffee and donuts to members and discussing the election, even discouraging votes for "outside" candidates.
Malec said she and Brunais went inside the lobby and approached two incumbent candidates. When asked if they were campaigning, she said, they told her they were simply participating in a member appreciation day.
Reports Of Campaigning
Other members reported that they were handed election information during drive-thru transactions that only included information about the three incumbents.
"Members kept telling us they were handing out election pamphlets so we went through to find out for ourselves," Malec said. She said she was in the passenger seat when her husband was informed by a teller that the board of directors was having an election and "you should vote" for the candidates on the pamphlet the teller gave him at the end of his transaction.
During a second campaigning attempt last Saturday at two separate branches by petition candidates, Malec and the others carried signs that read "Vote for Change." Their efforts were countered by DFCU employees holding signs that read, "Members for Incumbents."
One member also reported seeing a ballot box at one of the branches with off-duty employees nearby campaigning for the incumbent candidates and urging members to vote on the spot. Tellers allegedly wore buttons that read, "Did you vote?"
Ballots mailed to members last month stated that members could cast votes via mail, Internet or by phone. Deadline to cast ballots is Feb. 9. Election results will be announced during DFCU's annual meeting at the Ritz-Carlton Hotel, Dearborn, on Feb. 15.
On Jan. 23, the three candidates supported by DFCU Owners United, will hold a candidates forum at O.L. Smith Middle School in Dearborn.
READ THE WHOLE LETTER
Readers of the Credit Union Journal can read the entire text of Linda Malec's letter to NCUA at www.cujournal.com and entering "Treichel" in the archive.
