KENSINGTON, Md. -
"In accordance with federation regulations, Lafayette Federal Credit Union hired RSM McGladrey, Inc. as the independent inspector of election to receive and tabulate the ballots for our proposed charter conversion to a federal mutual savings bank. On January 5, 20007, RSM McGladrey, Inc., notified Lafayette that it "discovered certain errors in (its) vote tabulation" and therefore withdrew its certification to Lafayette, which the Board relied on to provide its certification to the NCUA.
"We are deeply disappointed that the integrity of the balloting process has been irredeemably compromised due to errors by RSM McGladrey in the tabulation process. In the opinion of the Board, these errors make it impossible to confidently ascertain the will of the membership. The Board has terminated the services of RSM McGladrey. Due to the closeness of the vote and the errors that were made by the inspector of the election, the Board is doubtful that a new third part inspector of election can provide unqualified certitude to the Board in order for the credit union and its membership to be confident in the final outcome. As a result, the Board has determined to terminate the Plan of Mutual Charter Conversion.
"Any allegations that the withdrawal of the certification of the vote results by the inspector of election was due to other than errors made by the inspector of election are false..."
