By Chad Selweski
@cbsnewsman on Twitter
Citing financial failure, state officials have taken over
a credit union run for many years by Jim Perna of Clinton Township, who is
running unopposed in August for the 12th District Republican
nomination for a Macomb County Board of Commissioners seat.
a credit union run for many years by Jim Perna of Clinton Township, who is
running unopposed in August for the 12th District Republican
nomination for a Macomb County Board of Commissioners seat.
Perna insists he deserves no blame for the troubles at
Health One Credit Union, located in Detroit, but on May 16 state authorities
turned the lending institution over to a conservator and escorted Perna off the
premises. The credit union reportedly lost $1.3 million last year and another
$181,000 in the first quarter of this year.
Health One Credit Union, located in Detroit, but on May 16 state authorities
turned the lending institution over to a conservator and escorted Perna off the
premises. The credit union reportedly lost $1.3 million last year and another
$181,000 in the first quarter of this year.
According to Perna, “I decided it was time to go after 42½ years, so I retired. We had a meeting of the minds and I retired on May 16.”
In the May 16 order issued by Annette Flood, director of
the Department of Insurance and Financial Services, she declared that Health
One was “operating in an unsafe and unsound condition.” The DIFS chief
immediately awarded the conservatorship to the National Credit Union
Association and put the NCUA in control as the new board of directors.
the Department of Insurance and Financial Services, she declared that Health
One was “operating in an unsafe and unsound condition.” The DIFS chief
immediately awarded the conservatorship to the National Credit Union
Association and put the NCUA in control as the new board of directors.
A new CEO has replaced Perna, who was ordered to turn over
all financial books, records, memos, email documents and assets. Flood’s order
also restrained Perna from maintaining any connections to Health One.
all financial books, records, memos, email documents and assets. Flood’s order
also restrained Perna from maintaining any connections to Health One.
Perna said all of the credit union’s financial problems
suddenly arose due to the activities of a revamped company subsidiary that did
business as a mortgage broker service. The two facets of the company were separate
business entities with separate boards of directors, he said. But they were
required to file a single financial statement with the state.
suddenly arose due to the activities of a revamped company subsidiary that did
business as a mortgage broker service. The two facets of the company were separate
business entities with separate boards of directors, he said. But they were
required to file a single financial statement with the state.
“The credit union got involved with this new company and
they lost their shirt,” Perna said. “But the credit union has always stood on
its own.”
they lost their shirt,” Perna said. “But the credit union has always stood on
its own.”
However, the order issued by Flood made no such
distinctions and, in fact, never mentioned the mortgage subsidiary. A spokesman for DIFS said Health One never
had two separate boards.
distinctions and, in fact, never mentioned the mortgage subsidiary. A spokesman for DIFS said Health One never
had two separate boards.
A Democrat-turned-Republican, Perna was first elected to
the Board of Commissioners about two decades ago. After suffering a re-election
defeat several years ago, he is making his third straight try to defeat
Democratic Commissioner Bob Smith.
the Board of Commissioners about two decades ago. After suffering a re-election
defeat several years ago, he is making his third straight try to defeat
Democratic Commissioner Bob Smith.
Perna routinely ran for election by stressing his long
experience in financial matters. But this week he said that it would be unfair
to connect his commissioner campaign to the credit union’s near-collapse.
experience in financial matters. But this week he said that it would be unfair
to connect his commissioner campaign to the credit union’s near-collapse.
One Macomb County Republican Party official said
privately that Perna’s status as an uncontested candidate for the GOP
nomination could present problems, given the latest events. But the party officially
declined to comment.
privately that Perna’s status as an uncontested candidate for the GOP
nomination could present problems, given the latest events. But the party officially
declined to comment.
It’s possible that a write-in candidate will challenge
Perna in the Aug. 5 GOP primary.
Perna in the Aug. 5 GOP primary.
