ODESSA, Texas– According to sworn statements, leaders of the then $113 million First Basin credit union conducted and consulted nothing more than "internal analysis" when they recommend members turn First Basin into a mutual bank.
First Basin launched a charter change attempt in August 2007 but withdrew the application before the members concluded their balloting. The vote count at the time the CU withdrew the application has, so far, not been revealed.
The depositions, taken in May of this year, were the part of the initial discovery phase of what might become a significant legal fight between the credit union, some of its unhappy members and the National Center For Member Trust, a resource the members used to oppose the proposed charter change.
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In their depositions neither First Basin CEO Shem Culpepper nor Board Chairman Annette Snowden mentioned considering the advice and analysis of the First Basin situation which Culpepper had received from Texas Credit Union League CEO Dick Ensweiler.
The analysis, conducted by CUNA Chief Economist Bill Hampel, had arisen from a conversation between Ensweiler and Culpepper about First Basin's options regarding charter change and in August 2007 Ensweiler recounted that Culpepper had said he would consider it.
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