NEWS, EVENTS, PUBLICATIONS & EMERGING ISSUES

SW&M NEWS ARTICLE
April 18, 2007

Styskal, Wiese & Melchione, LLP on Behalf of Continental Federal Credit Union Demands Wings Financial Federal Credit Union Cease and Desist Its Illegal Hostile Takeover

Our office has received numerous inquiries from media, credit unions and other concerned parties in the credit union movement regarding our “cease and desist” letter of April 9, 2007 sent to the Wings Financial Federal Credit Union (“Wings Financial”) Board of Directors on behalf of Continental Federal Credit Union and its members. With the permission of our client, our office is releasing the statement which provides a substantial portion of the text of the April 9, 2007 “cease and desist” letter to Wings Financial.

Briefly, the statement indicates:

1. The Wings Financial hostile takeover campaign is unlawful for any number of reasons including, but not limited to, trespass, defamation, tortious interference with contract, tortious interference with prospective economic advantage, republication of false statements, violations of consumer protection laws and regulations, false advertising and unfair competition.

2. The petitions Wings Financial is soliciting are defective as they are misleading and deceptive and/or obtained during the commission of crimes or unlawful acts.

3. The hostile takeover campaign is fundamentally unsound and defective as it seeks to unlawfully bypass and impermissibly override the Board of Directors of Continental Federal Credit Union.

4. The $200 per capita payment Wings Financial is offering is not authorized under the Federal Credit Union Act and interpretations thereof. Beyond this, it raises concerns as to whether it is an impermissible attempt to influence or reward an officer, director, employee of a credit union in connection with business or transaction of a financial institution.

Read the complete statement . . . (PDF Download - 589 KB)

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