Failed CU-Convert Sues Dissidents

ODESSA, Texas – First Basin CU, which was forced by members to abandon its conversion to a mutual savings bank, has filed suit in state court saying opponents of the charter switch illegally interfered in the initiative.
 
The suit charges The National Center for Member Trust, Self-Help CU, as well as the founder of Save First Basin CU, Letty Moreno, interfered in attempts to convert to a savings bank by disseminating false information to the members of the credit union, the public and the media.
 
The credit union also claims the defendants or “individuals at their discretion” contacted members warning them that they would lose all money they'd deposited in the credit union, and that First Basin would close all their accounts.
 
Also named as defendants are: Ector County Commissioner Armando Rodriguez, Manny Puga, chief executive officer of the Odessa Hispanic Chamber of Commerce, and three other members of Save First Basin.
 
The $125 million credit union has asked the court to recover $600,000 from the National Center and Self-Help CU, which helped found the Trust; money the credit union spent on the failed conversion.
 
First Basin began the conversion process almost two years ago, but suspended the member vote in February, citing “misinformation“ in phone calls being made from Save First Basin to members. The vote was officially cancelled in March.
 
This is at least the fourth time a credit union has abandoned its conversion to a mutual savings bank and sued members opposing the conversion.