BROOKLYN, N.Y. — The nation's largest ethnic credit union remains locked in a tough legal battle, as a former board member at Polish and Slavic FCU has filed lawsuits against the institution alleging that her removal from the board violated the credit union's bylaws.
In a suit originally filed in late December 2008, board member Krystyna Myssura asked a state court to prevent the rest of the credit union's board from declaring her seat vacant and the court responded by enjoining PSFCU from appointing a new member replace her, though Myssura has not attended any meeting since the board voted to declare the seat vacant in December.
"It is Krystyna Myssura's intention that it proceed quickly," said her attorney, Erick Myssura. "It is not by her choice to have it prolonged. She would like the merits of the case be heard and decided as soon as possible."
Myssura Refutes Ethics Charges
In the petition, Myssura refutes charges made by other members on the board that she violated the credit union's code of ethics and her fiduciary duty to the membership; charges which were the basis of the board declaring the vacancy. Myssura also contests that the way in which she was removed, by a simple majority vote of the board of directors, violated the credit union's bylaws. A January reply letter from NCUA assistant general counsel Shelia Albin backs up her claim, Myssura said.
In the letter Albin said Ms. Myssura's removal was not appropriate, as it would have required a "membership vote at a special meeting held for that purpose" or if the director had not attended regular board meeting or failed to perform his or her duties.
"The circumstances described in your letter appear to reflect disagreements among board members, rather than a failure to perform your duties as a director. A board of directors cannot use the vacancy provision to circumvent the rights of the members to vote on a director's removal," Albin wrote to Ms. Myssura. "Absent an affirmative membership vote at a special meeting, a director cannot be removed from membership on the board of directors. Given the nature of the allegations you described were brought against you, our view is the board of directors did not have permissible grounds for the board to declare your seat vacant."
The letter was also sent to PSFCU, which declined to take any action.
"The opinion is there, the credit union received that opinion and they have not acted on that opinion," said Erick Myssura.
PSFCU declined to comment on the specifics of the case as it is ongoing litigation, saying only that the board removed Mrs. Myssura by majority vote "in the best interests" of the credit union and insisted she "was afforded full due process to respond and be heard during the course of this transparent process."
No Stranger to Controversy
The 70,000-member strong credit union is no stranger to controversy. PSFCU settled a suit brought by another former director, Bozena Kaminski, for defamation after the Forum Organized to Protect Poles put together a petition to remove him alleging that he received preferential treatment for two real estate loans. The lawsuit stretched out for several years until it was finally settled in February. In a statement PSFCU said the loans were "obtained and issued in accordance with the credit union's lending policy in effect at the time of issuance" and denied any wrongdoing on its part.
As new board elections near the horizon, a group called the Committee For Fair PSFCU Elections is protesting against four current board members allegedly using credit union funds to advertise themselves for re-election against six challengers. Committee chairman Jack Bakowski told Credit Union Journal that the board still has yet to address the Myssura situation; that, coupled with the campaign controversy, is leading to "PSFCU members revolting against the majority of the board," he said.
