Jerry Logan, a former board member for the $613 million,Tuscaloosa, Ala.-based Alabama One Credit Union, initiated a classaction lawsuit against the cooperative's board of directors and atleast two of its executives, according to a complaint filed inTuscaloosa County Circuit Court Friday.

The complaint named Alabama One CEO John Dee Carruth and formerMember Business Lending Manager Tammy Ewing, along with all membersof the credit union's sitting board of directors and supervisorycommittees, and was filed on behalf of Alabama One members. Thecomplaint charged the defendants with violations of state law,breaches of fiduciary duty, waste of corporate assets, conspiracy,and reckless or intentional misrepresentation and suppression ofmaterial fact.

“Specifically, defendants allowed Alabama One to make 'strawloans' to certain members, which put the credit union at riskfinancially, and resulted in the unsafe practice of allowing alarge concentration of Alabama One's loan portfolio to be given forthe benefit of one member-owner,” the complaint read. “Alabama Oneprovided financing to Danny R. Butler and others, in violation ofstate regulations, federal regulations, laws, and Alabama One'spolicies and procedures. Such acts were taken in thefurtherance of Defendants' own self-interests and the interests oftheir friends, co-conspirators and family,” the complaintadded.

Logan, who worked as an employee of the BF Goodrich tiremanufacturing plant in Tuscaloosa when Alabama One was named BFGoodrich Federal Credit Union, served on the cooperative's boarduntil 2004, when he left over a dispute about a renaming the creditunion. He later attempted to rejoin the board several times –most recently in March 2015, when hewas defeated after collecting enough signatures torun.

Logan's complaint quoted and focused on the 18-page cease anddesist order that the Alabama Credit Union Administration issuedagainst Alabama One on April 2.

The order also quoted the NCUA's regulations regarding theobligations credit union directors have to their members, andalleged dereliction of duties on the parts of the supervisorycommittee as well as the board. It noted that the supervisorycommittee had done nothing to reign in the provision of strawloans, even when the ACUA ordered it to do so.

The complaint also asked the court to appoint a receiver for thecontroversial credit union and remove its current management.

Read more: Alabama One releases a statement inresponse …

“Defendants' actions have made it impractical to carry onbusiness in accordance with the governing documents and applicablelaw,” the complaint read. “As a result, plaintiff requests that thecourt remove the defendants from control of Alabama One andthereafter appoint a receiver to manage the day-to-day activitiesand manage the business operations of Alabama One.”

Logan (pictured at left) referred calls for comment to hisattorney – Burt Guy of the Birmingham, Ala.-based firm Campbell,Guin, Williams, Guy and Gidiere – who promised to distribute apress release Monday.

The credit union challenged Logan's attempt to represent AlabamaOne's members and asserted that it would abide by the ACUA ceaseand desist order.

“Alabama One Credit Union has not had the opportunity to fullyreview the lawsuit filed by Jerry Logan this morning, but itsinitial review has revealed that Mr. Logan has made mistakesconcerning certain basic facts and that his allegations center onclaims which have long ago been investigated and debunked,” thecredit union said in an email statement. “The credit union intendsto vigorously defend itself against Mr. Logan's allegations. Mr.Logan recently ran for election to the credit union's board ofdirectors and was defeated by the membership of the credit unionthat he now seeks to represent in his lawsuit.”

The statement went on to read, “Mr. Logan's complaint makesreference to an order to cease and desist. Alabama One, however, isin the process of fully complying with the order and anticipatestimely completion of each and every obligation, instruction andrecommendation from its regulators. Indeed, Alabama One is proud ofits over 60 years of service for the people of Alabama and recentsignificant improvements it has made in operations, addedefficiencies and new personnel that will help it grow and thrive inthe coming years.”