Michigan's largest credit union suspended its promotional pitchman, HGTV celebrity host Carter Oosterhouse, after he was accused of alleged sexual misconduct with a former co-worker.
The 41-year-old Oosterhouse has denied the salacious accusation that first appeared in the Hollywood Reporter last Thursday. On Friday, the $5 billion Lake Michigan Credit Union in Grand Rapids, suspended its marketing relationship with the Traverse City, Mich. native and LMCU member. He moved to Los Angeles after graduating from Central Michigan University and landed a part as a carpenter on TLC's Trading Spaces in 2003, which launched his national career and led to his HGTV cable shows and network television appearances.
"We take the accusations brought forth against Carter very seriously. In our dealings with Carter, we never witnessed any type of behavior suggested in the allegations and have found him to be a person of character," LMCU said in a prepared statement Monday. "Lake Michigan Credit Union has a zero-tolerance policy toward any form of harassment committed by or on our employees or our representatives. LMCU is surprised at the allegations brought forth. At this time we've made the decision to suspend our marketing relationship pending further investigation into this matter."
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Over the last five years, Oosterhouse has appeared on the credit union's commercials, billboards, website, videos and other promotional materials.
LMCU would not say when the investigation would be completed.
According to the Hollywood Reporter, Kelly Kaminsky, who was employed as Oosterhouse's makeup artist in 2008, said she acquiesced to his demands for oral sex when he allegedly threatened her employment after months of incessant badgering. She claimed that the experience led to her hospitalization for depression and job loss.
In a statement to magazine, Oosterhouse said the accusation was upsetting and acknowledged the intimate relationship with Kaminsky, but he also said it was 100% mutual.
Since the news broke, many Facebook comments seemed to doubt the woman's accusation, and a few people questioned whether the credit union should have suspended Oosterhouse.
"They suspended ties with him because of an allegation that has no proof? And in 2009? I'm calling Bull!" wrote Dan Bodamer on the Facebook site of MLive, a local news outlet that reported on LMCU decision to suspend Oosterhouse. "Everyone should contact the Credit Union and say, "so me the proof or the police report.'"
"Over allegations?" wrote Rachele Julian after reading MLive's article. "Innocent till proven guilty."
Pamela Irwin Olivarez wrote that although she didn't believe Oosterhouse should have been "let go" unless there was proof that a crime occurred, she added that it "might be time for me to find a new Credit Union."
But Tracy Hiddema Roberts wrote she felt "bad for the credit union because it puts them in a bad spot, but they have suspended the relationship, not ended it."
"Hopefully, she can be proven wrong and he sues her for defamation," Roberts wrote
Oosterhouse's marketing relationship with LMCU happened by pure chance several years ago when he visited the credit union's mortgage office in Traverse City to arrange a home loan.. Sandra Jelinski, LMCU president/CEO and an HGTV fan, heard about the transaction and suggested Oosterhouse would make a good LMCU spokesperson.
He was very receptive, and the credit union worked with him and his agent to arrange the details. This was the first time the credit union has used a celebrity spokesperson.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
