LOMPOC, Calif.–The former CEO of CoastHills CU here has issued a statement saying the credit union has wasted time and money on “failed mediation” related to his departure and that the CU’s board has little “understanding of its purpose.”
Jeff York, the former president/CEO of the $1.1-billion CoastHills Credit Union, filed suit against the credit union in August of 2018 alleging that he was not only let go “without cause,” but who in the 102-page suit alleged 16 claims of misconduct by the credit union, including that a board member attempted to make his personal weight loss part of his 2018 performance goals.
Now, in a new statement, York said the credit union in January of this year requested mediation to settle the lawsuit, which York said he agreed to “even though the first attempt at mediation failed in June 2018 due to CoastHills’ lack of response.”
In the statement, York alleged “CoastHills launched a series of defamatory statements about York to the local press, industry trade publications, vendors, and the CoastHills’ staff.”
‘Poor Decision Making’
York further alleged CoastHills is now refusing to honor his employment contract and is trying to remove his retirement plan. York said four other former CoastHills executives have filed complaints against CoastHills after they too were terminated or forced out, and that the credit union is attempting to remove the other executives’ retirement plans as well.
“It’s easy to waste time and money when you’re not spending your own money,” said York in a statement. “CoastHills will now spend even more of its members’ money going through arbitration. The good news is that arbitration is not confidential and, in my opinion, will expose the poor decision making, lack of transparency, absence of proper governance, and malice behind CoastHills’ efforts to push me and others out of the company.”
York, who was CEO for 14 years and oversaw growth from $350 million in assets, said that prior to being terminated he and other CoastHills executives filed individual whistle-blower complaints with federal and state regulators citing board misconduct.
Additional Allegations
York further alleged in his statement that one member of the CoastHills board, Kris Andrews, has been involved in a similar situation in the past while a member of the Lompoc Unified School Board. While on the school board York alleged Andrews “orchestrated another bad-faith effort” that led to the termination of the school superintendent and other top executives. What’s taking place at CoastHills, York said, is drawn from the “exact same playbook and stems from the same poor decision making, egos, and lack of proper governance.”
York said he wanted members to know that the credit union’s insurance may not cover some of the allegations in the lawsuit, and if that is the case the money will come out of the members’ pockets or the pockets of individual board members.
‘Bad Faith Effort’
York alleged the credit union has made a “bad faith effort” and that there is “clear evidence of a volunteer board with little, if any, understanding of their purpose.”
As CUToday.info reported here, the credit union responded with a statement in 2018: “CoastHills Credit Union wishes to speak to its members and the community at large regarding the lawsuit filed by its former CEO Jeff York against the credit union, two employees, and eight of its current and former volunteer directors. The lawsuit claims that Mr. York was discriminated against, including because of his gender, and that he was wrongfully terminated. His claims single out a couple of the directors, and makes offensive allegations against them in what appears to be an attempt to destroy their reputations in the community. His motives may be further revealed by the fact that his legal counsel recently sent out a press release reminding people that he filed this lawsuit more than a month ago, and is repeating the false allegations he is asserting against the credit union and some of its directors.”