Joseph Stilwell's investor group has named its potential director nominees to HopFed Bancorp Inc.'s board.
Mark Alcott, Stephen Burchett and Edward Fanning have agreed to stand for election at HopFed's 2018 annual shareholder meeting. Alcott is a managing partner at law firm Harlin Parker Alcott & Chaudoin PSC and a director of real estate holdings company H.P.R. Inc. Burchett is with Jackson Kelly PLLC's healthcare litigation practice group, and is on the boards of Poage Bankshares Inc. and Town Square Bank. Fanning is president and owner of management consulting service provider Spectrum CXO LLC, as well as acting CEO of athlete-focused technology firm The Labs Holdings LLC.
Stilwell, Stilwell Value LLC and other investment vehicles beneficially own an aggregate 627,128 HopFed shares, or a 9.5% stake in the Hopkinsville, Ky.-based company. On top of the board nominees, the shareholder activist group is also calling for CEO and board member John Peck's departure. They claim Peck has breached his fiduciary duty to the company.
The investor group also wants HopFed to be sold.
A HopFed special litigation committee in February said it found no basis for the company to sue its CEO. And the board in October 2017 amended the company's bylaws to disqualify for director election any person found to be under the control of someone ineligible for service. Stilwell and Stilwell Value in March 2015 had consented to an administrative SEC order that alleged inadequate disclosures of conflicts of interest, in violation of the Investment Advisers Act. Stilwell was ordered to pay a $100,000 civil penalty; Stilwell Value was ordered to repay $239,157 in fees and to pay a $250,000 civil penalty.