FRESNO, Calif. — Members voted 219 to 29 in favor of removing suspended board member Tom Rotella from the board of the $112 million United Local Credit Union at a special meeting on April 22.

According to Supervisory Committee Chair Stan Louie, Rotella was suspended due to abusive conduct and potential liability to the credit union and voted off the board when a compromise agreement could not be reached

Rotella said his relationship with CEO Jill Bechard, as well as leaders on the board and supervisory committee, soured after he said he simultaneously opposed a proposal to close a branch and questioned a DFI audit that found exception with loan terms granted to the board chair.

Though Rotella said he doesn't believe anyone at the credit union is breaking the law, the events created a rift that eventually culminated in a heated exchange between Rotella and Bechard, which resulted in his suspension earlier this year.

Louie confirmed the incident, saying the supervisory committee investigated the event and determined it to be abusive.

“This incident, however, was only one of a series of conduct issues Tom Rotella had with the board and the credit union staff,” Louie said.

The ousted volunteer, a 52-year-old machinist union representative, said he sent an official complaint on April 28 to the California Department of Financial Institutions, alleging the voting and required disclosures were improperly handled per DFI regulations.

Louie listed several allegations in Rotella's letter to Acting Deputy Commissioner Beverly Ryan, including improper meeting notice distribution, improper use of absentee ballots and proxy voting, exclusion from ballot counting procedures, ballots that were improperly numbered, and he said the credit union has yet to inform him of the outcome.

Louie said an independent auditor certified voting results, and all procedures for the meeting were followed according to California DFI code and credit union bylaws.

“While Mr. Rotella has alleged improprieties about every aspect of the special meeting … at no time has Mr. Rotella articulated any factual issues to support his blanket claims,” Louie said.

In response to Rotella's claims that CEO Bechard and current volunteer leadership are ineffectively stewarding member funds, Louie pointed out that United Local posted an impressive 1.13% ROA for 2007 and maintains 15% capital.

“Enhanced scrutiny from state and federal examiners, as it relates to changes in reporting on the 5300 Report, is something credit unions face every day, and we are no exception,” Louie said.

“We have a healthy professional relationship with our auditors and examiners, and the supervisory committee has received no complaints to date.”