Lafayette Federal Credit Union, in Kensington, Md., has scrapped its plans to convert to a mutual thrift.
The $330 million-asset credit union said in a statement posted on its Web site late Friday that voting tabulation errors made by its third-party election inspector, RSM McGladrey Inc., have "irredeemably compromised" the integrity of the vote and made it "impossible to confidently ascertain the will of the membership."
Lafayette filed its conversion application with the Office of Thrift Supervision on June 12. Since then its management and its board has faced vocal criticism from credit union members, industry representatives, and even local politicians, who have raised concerns about their motivations for converting.
Lafayette members voted 2,555 to 2,537 in favor of conversion at a Dec. 16 meeting, but last week RSM McGladrey announced that it had found "certain errors in the vote tabulation for the dates in question."
Lafayette insisted that its vote was fair and in accordance with National Credit Union Administration guidelines. Lafayette will continue to operate as a credit union but will "reevaluate the strategic options of the credit union and adjust our business plan accordingly," the board said in the press release.
