KENSINGTON, Md. — In a surprising change of course the $320 million Lafayette Federal Credit Union has withdrawn its application to change its charter to that of a mutual bank.

The CU ended a week of intense speculation on Friday, Jan. 12 when it posted a press release that announced the charter change withdrawal and blamed its accounting firm, RSM McGladrey, for having to make the withdrawal. "We are deeply disappointed that the integrity of the balloting process has been irredeemably compromised due to errors by RSM McGladrey in the tabulation process," the credit union said in the press release. "In the opinion of the Board, these errors make it impossible to confidently ascertain the will of the membership." The board has terminated the services of RSM McGladrey.

"Due to the closeness of the vote and the errors that were made by the inspector of election, the Board is doubtful that a new third party inspector of election can provide unqualified certitude to the Board in order for the credit union and its membership to be confident of the final outcome. As a result, the Board has determined to terminate the Plan of Mutual Charter Conversion," the CU added.