After controversy, community credit union team plans its rebound
Malcolm Wells, an ABEP board member, hugs Northside resident Roxxanne O’Brien during ABEP’s Oct. 18 community meeting to discuss the future of a black-led credit union in the community. Photo by David Pierini
By Kenzie O’Keefe Editor
Following months of internal turmoil, leaders at the Association for Black Economic Power say the organization is still committed to opening a black-led credit union in North Minneapolis.
On Friday night, Oct. 18, the organization held its first public meeting since news broke that two of the key leaders behind Village Financial Cooperative were ousted over allegations of organizational and financial mismanagement, which they have publicly denied.
ABEP’s three current board members— Malcolm Wells, Felicia Perry, and Elaine Rasmussen—told the crowd of community attendees assembled in the basement of New Salem Baptist Church that the organization is moving forward with the intention to open a credit union. They say there are many legal and logistical details need to be worked out before specifics on new leadership, location, and an opening date can be decided. All but one ABEP staff member, Samantha PreeStinson, has been laid off.
The leaders said the past few months have been painful as the organization founded as a response to black financial trauma and police violence has experienced mismanagement and potential criminal behavior. “It hurts to have to do this,” said Perry. But she says the project is “worth fighting for.”
Meeting attendees were inquisitive and seemed largely supportive of the current ABEP team on Oct. 18. Several in attendance took the public forum as an opportunity to praise ABEP's current leadership and express their support for the project moving forward.
“I want to applaud you all for having the courage to come out into the community,” said Bill English. “That tells me you’re trying to be transparent. This too will pass.”
HOW WE GOT HERE
In early August, two of ABEP’s key leaders were removed from the organization. First, Joe Riemann, the former director of finance and innovation, was laid off. Soon after, Executive Director Me’Lea Connelly was “terminated” by the board for “organizational mismanagement, misconduct in regard to the organization’s finances and credit union application process,” and “potential fraudulent activity and theft,” according to a statement ABEP sent stakeholders in mid-September.
At that time, Connelly told North News she “absolutely, vehemently” denies “any accusations against me around anything illegal or theft.”
“I did everything I could to fulfill the mandate community made to establish a black-led credit union,” she said.
ABEP’s three board members, Felicia Perry (front), Malcolm Wells, and Elaine Rasmussen address the future of Village Financial Cooperative after two of the project’s key leaders were ousted over allegations of financial and organizational mismanagement. Photos by David Pierini
Riemann responded similarly. “I have never heard any of these allegations directly from the organization either when I was employed there or after the fact. These are false accusations and completely unsubstantiated,” he said.
A police report detailing potential alleged crimes committed by Connelly and Riemann was filed by Pree-Stinson on Sept. 4. At the Oct. 18 meeting, Wells said the police department has turned the investigation over to the Bureau of Criminal Apprehension.
THE ROAD AHEAD
Opening a credit union requires receiving a state charter, which ABEP achieved last year, and federal insurance, which is yet to be acquired. An application for insurance was submitted to the Department of Commerce under Connelly’s leadership. That application was sent back, requiring adjustments in order to be approved.
Moving forward, ABEP must decide whether to amend the application or start over completely. When asked when that decision needed to be made, Perry said they "essentially have as much time as needed to submit."
Opening a credit union also requires naming "subscribers"—community champions of the project. "We are prioritizing identifying subscribers, completing and submitting [the] application, and the CEO search for the proposed credit union," said Perry.
Rasmussen, who has been one of the credit union’s subscribers, just joined the board in October. She says there was less than $30,000 in the bank account when she arrived. Whether or not there should have been more money in the account is part of the investigation underway.
Since joining the board, Rasmussen says she has been pursuing emergency gap funding to keep the organization operating through the end of the year. She says ABEP has engaged a “woman-owned, blacked-owned firm” to “clean up” their books and that they will continue to host public meetings. “We want to create more opportunities to make this a more transparent process,” said Rasmussen.
To receive insurance, ABEP will need to prove that they have at least 500 people who have pledged to move their money to the credit union. Clarifying who has pledged already is “part of what we are going to be doing over the next couple of weeks,” said Wells.
The project’s major financial backers which include the City of Minneapolis and The Jay and Rose Phillips Family Foundation of Minnesota (which also funds this publication) say they remain committed to supporting the development of a black financial institution.