Larry Morgan, who resigned Monday from his post as administratorof the Alabama Credit Union Administration, said his decision wasbased on several factors, including the amount of time required tohandle complicated issues like lawsuits involving Alabama OneCredit Union.

“I felt like the time was right to retire because I'm notgetting to be with my family as often as I'd like, because therequirements of the job kept taking up more and more time,” Morgan,69, told CU Times in a phone interview Tuesdayevening.

“At this stage in my life, I want to spend more time with myfamily,” he said. “I've got two twin granddaughters who play sportsand I'd like to go to their games and relax.”

Following Morgan's resignation, Alabama Gov. Robert Bentley appointedLloyd Moore, deputy administrator of the ACUA, as interim directorof the state agency, said Jennifer Ardis, communications directorfor the governor's office.

A search is underway for a new director, she said.

Morgan assumed the state regulator post in 2011 after retiringas CEO of the $2.2 billion APCO Employees Credit Union inBirmingham. He was also chairman of the board for the $3.7 billionCorporate America Credit Union.

The ACUA continued its investigation at the $608 million AlabamaOne, which is facing civil lawsuits from several members who allegethe credit union and some of its employees concocted a straw loanscheme that defrauded members and benefited Tuscaloosa used cardealer Danny Ray Butler, according to court documents.

Before resigning from the ACUA, Morgan lifted regulatorysuspensions and all restrictions against four Alabama One employees: CEO John Dee Carruth, ChiefOperating Officer Martie Patton, Business Lending Manager TammyEwing and Teller Celina Hood. The ACUA had suspended the fouremployees Feb. 28.

Alabama One said in a Tuesday release Morgan was manipulated bytrial lawyers, including Justice “Jay” Smyth of Tuscaloosa, whorepresents several Alabama One members who are suing the creditunion.

Morgan declined to comment on whether he was influenced by Smythor other lawyers involved in the cases.

Vic Haslip, a Birmingham attorney representing Alabama One, saidthe suspensions were part of an orchestrated attack on the creditunion.

“The truth is that Mr. Morgan led the team that suspended AOCU'sfour long time and trusted employees without basis,” Haslip said.“While these employees were suspended and, later, placed onadministrative leave, the ACUA conducted an investigation todetermine the facts behind the allegations the regulatory agencyhad received from a group of trial lawyers and others who stood togain from attacks on the credit union.”

“Late last week, following their investigation, the ACUA fullyreinstated the four AOCU employees without condition orrestriction,” Haslip continued. “Within one business day of theirfull reinstatement, Mr. Morgan abruptly tendered his resignationfrom the ACUA. No one knowing these facts could rationally believethat any regulator, after such a thorough investigation, would havereinstated these employees had the plaintiffs' lawyers' allegationshad any truth to them. There are no issues that need to beaddressed by a new director of the ACUA.”

In an interview Tuesday with CU Times, Smyth deniedAlabama One's claims that he manipulated state regulators.

“We have no way of knowing the facts upon which the suspensionswere originally based, or the facts upon which reinstatements weresupposedly based,” Smyth said. “Any suggestion otherwise is simplya fabrication.

“The only way we learned about the presence of regulators thefollowing day was because someone called us and reported that'people in dark suits, along with Alabama State Troopers,' had beenseen entering the front doors at Alabama One,” Smyth said.

Smyth said his clients are concerned that Alabama One memberswere reportedly prevented from asking questions during the creditunion's annual meeting on March 22, which was overseen byCarruth.

“Following a motion made by a member of one of the law firmsrepresenting Alabama One, the traditional Q&A segment wasremoved from the agenda without advance notice to the members,”Smyth said in a written statement to CU Times.

The credit union denied any wrongdoing.

*The annual meeting was adjourned upon motion by a member thatcarried by majority vote of those members in attendance,” Haslipsaid. “Apparently Mr. Smyth is suggesting that the entiremembership in attendance at the credit union was in cahoots to denymembers an opportunity to be heard. This is simply not thecase.”