Ex-CU's Board Fights To Save Seats

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Embattled directors at former credit union Synergy Financial made a last-ditch plea last week to the ex-credit union's other 1,000 stockholders to save their lucrative board seats from a dissident ownership group. "The future of your company is at stake-do not vote for PL Capital's nominees...throw away the green proxy card!" the management, headed by director John Fiore, pleaded in proxy solicitations filed with the SEC.

Fiore claimed that he and two other directors who helped flip the credit union to savings bank have not unjustly enriched themselves, as charged by PL Capital, which has a 9.9% stake and is the bank's largest shareholder.

Management, which paid Fiore $4.5-million the past three years, claimed that more than $14 million paid to directors and management since the CU-convert went public three years ago was awarded "to encourage directors and employees to maximize the long-term value of your investment in Synergy Financial Group." Two of the other directors up for reelection, Nancy Davis and Phil Scott, were each paid $500,000 the last two years. PL Capital is seeking to win two of the three board seats up for election this month and replace two-Fiore, Davis or Scott-all of whom helped take the ex-CU public. Synergy Financial was known as Synergy FCU until January 1999.

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