Conference 7.286::dcu

546.0. "Worcester Telegram Article on Election Results" by WLDBIL::KILGORE (...57 channels, and nothin' on...) Fri May 01 1992 10:07

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 Digital - Members take over credit union. New directors named amid fraud
	charges.
	{The Worcester Telegram & Gazette, 24-Apr-92, p, ?}
	{Contributed by: Phil Gransewicz}
   Dissatisfied members of the Digital Employees' Federal Credit Union took
 control of the board of directors yesterday, promising to overhaul a financial
 institution that reported a $5.8 million net loss in 1991.
   Election results were announced the same day as the $359 million credit
 union, the largest in New England, reported $8.6 million worth of losses and
 expenses as a result of actions by former president Richard D. Mangone.
   The credit union's board fired Mangone last April after his involvement with
 the now-defunct Barnstable Credit Union was publicized. The union has charged
 him with fraud that has more than offset about $2.8 million in profits.

   Police outside

   Several police officers patrolled the parking lot at the Maynard Rod & Gun
 Club yesterday, as credit union executives released the results of last
 month's balloting.
   Twenty people vied for the seven positions on the board of directors,
 including nine members recommended by the credit union's nominating committee.
 An additional 11 members gained a spot on the ballot by petition.
   Final results showed that four petitioners and three of the nominated
 candidates won election from the 18,774 votes cast. Two incumbent board
 members were not re-elected.
   "It just goes to show that if you get involved in something, it can make a
 difference," said Philip J. Gransewicz of Holden, a petition candidate who
 won. "It's now time to restore trust and confidence at a credit union in need
 of some new direction."
   The petitioned candidates, running on a "real choices" slate, battled the
 incumbent board for more than six months, successfully calling for a special
 meeting last November to oust the board of directors.

   New elections

   That vote failed, 651 to 540, but disgruntled members did pass a proposal to
 hold new elections within 90 days.
   Each side expressed fear about yesterday's session.
   The "real choices" slate questioned the presence of security personnel and
 expressed concern that a meeting of credit union employees preceding the
 annual session was used to attract DCU members sympathetic to the status quo.
   Mark A. Steinkrauss, outgoing DCU chairman, said the police presence was
 essential following the raucous November session at the Sheraton Tara Hotel in
 Framingham.
   Criticized by some credit union executives as "witch hunters," members of
 the "real choices" contingent sported red-and-white buttons yesterday
 featuring a diagonal line drawn across a witch's broom and hat.
   "That's our 'No witch hunters' button," said Ronald W. Boyan of Shrewsbury,
 one of the organizers of the "real choices" campaign.
   Members of the media were barred from the meeting, and no audio or visual
 recording devices were allowed. In an interview after the session, Steinkrauss
 said Mangon's fraud compounded existing financial problems associated with the
 recession, reduced work forces, and a decreased loan demand.

   A challenging year

   "It's been a challenging year for a lot of reasons," he said. "Certainly the
 fraud wasn't something expected."
   Mangone headed the DCU, a separate entity from Digital Equipment Corp.,
 since its 1980 inception. Board members said they were unaware that Mangone
 was simultaneously chairman of Barnstable Credit Union, which was seized by
 regulators in March 1990.
   The board has filed suit against Mangone in an attempt to recoup some of its
 losses.
   Paul Kinzelman of Hudson, another petition candidate who won election, said
 the former board shunned its oversight responsibilities, failed to
 communicate, and made poor policy decisions.
   "When we got into this, a lot of us didn't understand the politics
 involved," he said. "It's taken us six months to win back our credit union,
 and I hope we can turn it around before it's too late."

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<><><><><><><><>   VNS Edition : 2568      Friday  1-May-1992   <><><><><><><><>
    

>    Mark A. Steinkrauss, outgoing DCU chairman, said the police presence was
>  essential following the raucous November session at the Sheraton Tara Hotel
>  in Framingham.

Good lord! Did you really say this, Mark? Are the folks at Fruit-of-the-Loom
aware of this paranoia? I haven't been able to identify another solitary soul
who felt that any special meeting occurrences would have justified such
caution.

>   Mangone headed the DCU, a separate entity from Digital Equipment Corp.,

So, then, it's _not_ an employee benefit? I'm confused . . . ?

-Jack

Re: .1 I think the reporter stressed that DCU is not DEC because Phil and I
asked him to. We emphasized not to use the term "Digital" when refering to
DCU because people will think he's refering to DEC.

Trouble was, that from where I sat at the Special Meeting, most of the most
raucous behavior was coming from a group of DCU employees.  (I understand
why they acted the way they did, but it hardly seems to be a reason to
mistrust the "witch-hunters".)

I thought by "raucous behavior" he was referring to the reaction of the
crowd when he tried to gavel the meeting closed after question 2 failed,
before people had a chance to vote on question 3.  Nobody was threatening
physical reprisals, but there was a lot of angry shouting.  There was no
need for security guards, though -- all it took to quell it was to hold 
the vote.  It sure was an interesting meeting!

	Enjoy,
	Larry