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Conference 7.286::dcu

Title:DCU
Notice:1996 BoD Election results in 1004
Moderator:CPEEDY::BRADLEY
Created:Sat Feb 07 1987
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1041
Total number of notes:18759

773.0. "Credit Union Times article on Richard Mangone" by SMAUG::GARROD (DCU Board of Director's Candidate) Wed Mar 09 1994 19:03

    There is an interesting article in the March 2nd issue of the "Credit
    Union Times". It is front page. Here are some excerpts. Text within
    [] was added by me to clarify things and set context for some excerpts.
    I can't type fast enough to type in the whole article.

    Title:	Convicted CEO disappears

    Maynard, Mass - Convicted swindler and former credit union CEO Richard
    D. Mangone jumped bail and fled prior to sentencing in a Boston
    courtroom for his part in the country's biggest credit union fraud. The
    former president of Digital Employees FCU here, Mangone was convicted
    last July for conspiracy, money laundering and bank fraud.

    Mangone was out on $50,000 cash bond...

    Approximately 30 DEFCU employees attended the sentencing hearing, and
    many expressed anger and frustration over its outcome...

    Mangone was facing a likely sentence of 15-18 years in prison and
    fines ranging from $250,000 to $1 million for each offense.

    [info on the Barnstable loans, $36.2M on property costing $23.3M] The
    loans originated at Barnstable, with Digital [FCU] buying stakes in
    them through a participation agreement.

    "Our credit union lost over $18 million," said Cockburn. "The other
    credit union went under. I think the net loss was near $40 million. But
    we have no clue if he (Mangone) has any money."...

    [comments by Charles Cockburn on what the judge said] "...It was the
    judge that didn't lock him up," lamented Cockburn. "The judge didn't
    mention the credit union people's loss. We wrote our loans off in '91,
    but our members have paid the price in rate increases. That was their
    money."...

    Cockburn and the rest of the Digital [FCU] employees who attended the
    hearing hardly disguised their opinion of Dick Mangone. One employee
    even worse a T-Shirt that read, "Don't be a Dick."...

    [End of excerpts]

    Right in the middle of the article is a colour photo of the current DCU
    CEO Charles Cockburn wearing the T-shirt referred to in the article.
    It is white with a black and white picture of Mangone on the front.
    Around the picture it says "DON'T BE A DICK". The caption on the photo
    of Chuck Cockburn says: "How does the staff of Digital CU feel about
    former CEO Richard Mangone? Current CEO Charles Cockburn makes a
    (fashion) statement.

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773.1My commentsSMAUG::GARRODDCU Board of Director's CandidateWed Mar 09 1994 19:0816
    I found a couple of things interesting about this article.
    
    I wonder why it was necessary for 30 DCU employees to trek into Boston
    on the Friday afternoon to go to the sentencing hearing. I wonder if
    they all took vacation time to do this
    
    I'm also glad to see that DCU is finally admitting that the fraud of 3
    years ago did indeed cost us the owners money and that we're still
    paying for it. And the almighty hurry in building up the sacred capital
    ratio is causing our rates to be even worse than they need have been.
    
    Finally is the image of our CEO with a shirt on saying "Don't be a
    DICK" the sort of image that the head of a $300M credit union should be
    portraying?
    
    Dave
773.2TOOK::DELBALSOI (spade) my (dog face)Wed Mar 09 1994 19:5813
I find the information in the article "interesting" but I guess I'd prefer
not to pass judgement on any of the CU employees including Chuck relative to
their actions here. My view of this whole thing has been as a member-member,
not as an employee-member or as a director-member. I can't say what's
appropriate or not for those who felt the pain inside the CU. I trust that
Chuck did what he felt was best as an employee of the CU and as the manager
of its employees. I haven't any opinion other than that.

Regarding the text of the article, why does it not surprise me that Mangone
took the risk of skipping the piddly bail bond given what he's up against?
Hope he's hunted down like a dog, but doubt that he will be.

-Jack
773.3PACKED::COLLIS::JACKSONDCU fees: VoteThu Mar 10 1994 09:303
I kind of like Chuck Cockburn's wearing of the T-shirt.

Collis
773.4NASZKO::MACDONALDThu Mar 10 1994 10:3915
    
    Re: .0
    
    I also don't want to judge anyone, but I find it interesting that
    Mr. Cockburn is the one getting the attention considering that 
    he was not one of the employees and members who were used and abused
    by Mangone.  He was the one hired (and I'm sure he's being well paid)
    to come in and clean up the mess Mangone left us.
    
    Of the DCU employees who were there under Mangone and perhaps have felt
    betrayed and abused by him, however, I can understand their actions
    perfectly.
    
    Steve
    
773.5yeah, I'm stuffySLPPRS::SCHAFERMark Schafer, Development AssistanceThu Mar 10 1994 11:294
    Kinda pleases me too!  Of course, I do not approve of the sexual
    language, but imagine,..., an executive acting like an engineer!
    
    Mark
773.6HELIX::SONTAKKEMon Mar 14 1994 14:502
    I thought without the embezzlement from the former chairman, the
    current chairman would not holding this job!
773.7CVG::THOMPSONAnother snowy day in paradiseMon Mar 14 1994 14:587
    
>    I thought without the embezzlement from the former chairman, the
>    current chairman would not holding this job!

    Actually it's only because the former President got caught. :-)

    		Alfred
773.8HELIX::SONTAKKEMon Mar 14 1994 15:022
    You mean to tell me that now that he is at large, the current President
    is afraid that we might re-employ him??
773.9NACAD::SHERMANSteve NETCAD::Sherman DTN 226-6992, LKG2-A/R05 pole AA2Tue Mar 15 1994 17:5513
    I rather appreciate Mr. Cockburn's approach here.  It is with a sense
    of humor, but it is greatly apparent by his example that ripping off
    the CU is not going to be met with the same type of sensitivity
    reserved through, say, the Valuing Differences program.  Mangone is a
    crook.  He ripped people off.  He has earned the disrespect of the CU.
    I'm very, very glad that there is little sympathy expressed for him.
    I appreciate that this disdain is being done with a sense of humor.
    There are no objections from me about having 30 DCU employees there in
    court.  Let the court be filled with as many employees as possible to
    get the message that dishonesty will NOT be tolerated.  This CU has
    lost a LOT of money due to dishonesty and it hurts. 
    
    Steve