Deposits to depositions

A legal petition against three members of a group opposed to First Basin Credit Union's conversion to a savings bank could be the first step in a process to fight a national group.

In a statement, Shem Culpepper, First Basin chief executive officer, said his filing a petition in 358th District Judge Bill McCoy's court to seek depositions from Letty Moreno, Carol Uranga and Sylvia Acosta is a start "in order to reach the real culprits."

Those culprits, Culpepper said, are with the National Center for Member Trust, a Raleigh, N.C.-based group that funds Save First Basin, and bills itself on its website as a nonprofit organization "formed to support the member-owners of credit unions that are attempting to convert to banks."

But Culpepper, who called Save First Basin "puppets" of the national center, said Thursday that the national group is out to get his credit union, which called off plans for a vote to convert to a savings bank last week.

"They basically don't want to see this credit union succeed," he said. "They believe the current business model is fine."

Moreno said the national center was used to help her group get through legal terminology.

"We contacted them for help because we didn't have the staff here," she said.

Efforts to reach the national center were not successful Thursday.

Legal documents accuse Moreno, Uranga and Acosta and possibly the national center and several credit unions of engaging in a contrived effort to slander and defame First Basin and its board of directors.

The suit alleges that the Save First Basin members called or directed others to call members of the credit union and tell them that if they didn't vote for the conversion, they would lose all money they deposited at First Basin.

Moreno denies that charge.

"We never called anybody," she said. "We don't even have a list of members, so there's no way we could have done it."

Culpepper said Thursday that he would be able to prove the calls happened if it goes to court but declined to say how he would prove it until after it goes to court.

The petition also alleges false and misleading posts were placed on Save First Basin's website, stating board members would receive between $40,000 and $50,000 per year for attending meetings once a month.

Moreno said that was based on research with stock-issuing banks, which would require a second conversion vote.

"We're not saying this is what will happen," she said. "This is what we said may happen because we don't know for sure."

But Culpepper pointed out that Texas actually allows board members at credit unions to be compensated.

Culpepper, who's said First Basin had no plans to become a stock-issuing entity, said the legal case would also prove false the assertions that a conversion would provide worse rates and fees.

Moreno, a former vice president at First Basin, makes no secret of her group's wishes to replace board members.

Culpepper said that would lead to changes in management, which wouldn't make sense because the credit union has doubled its value in the last four years, increasing its net worth by $5.6 million.

Moreno said she would wait to talk with legal counsel before deciding whether or not to give a deposition.

"I don't have a problem doing it, because we have nothing to hide," she said.

Culpepper said legal action was needed because Save First Basin had not been cooperative in providing information.

First Basin officials said the conversion was needed to allow them to add locations and expand its commercial lending accounts.

Since the vote was called off, Culpepper said other area credit unions have worked against First Basin to help force board changes.

"The credit unions here completely turned their back on us," he said.

In the news release, Culpepper said Save First Basin leaders have engaged in a "scaremongering stew of lies, misrepresentations and innuendo."

Moreno counters that information put out by both sides had to be approved by regulators.

On Thursday, Culpepper said the only argument with merit Save First Basin has put forward is that it's "one member, one vote" policy would change to one giving more sway to those with more invested.

"They've made a constant stream of false and misleading information," he said.