The chief executive of a Michigan credit union is out of her job after an AI-altered photo of her family in 'Lake America' sweatshirts went viral in Canada, an image she says she posted only to her private Facebook page before her sister shared it publicly.
Family First Credit Union told members in a letter on its website on Wednesday 23 September that Jane Smith was no longer an employee, 'effective immediately'. Chief operations officer Jason Acosta is serving as interim CEO.
The letter, signed by Acosta and board chairman Maurice Patterson, gave no reason for Smith's departure and did not say whether she resigned or was dismissed.
How a Private 'Lake America' Photo Went Public
Smith gave her account to Flint broadcaster ABC12 on 17 September. She said the family was at Detroit Metropolitan Airport on 11 September, about to fly to Halifax, Nova Scotia, for a 10-day holiday, when talk turned to Donald Trump's order renaming Lake Ontario. They took a photo and used ChatGPT to put everyone in matching 'Lake America' sweatshirts.
'We weren't trying to make a political statement,' Smith told the station.
She said she posted the edited image to her private Facebook page with a marker identifying it as AI-generated, under a caption that ended: 'Not sure Canada will. Lol lol.' Once the family reached Halifax, she said, her sister Lisa, who was on the trip, took a screenshot and posted it publicly without the label.
'My sister took a screenshot, she made her own comment and she posted it,' Smith said. 'We were in Halifax at the time. We never had actual sweatshirts. We never wore sweatshirts.'
The screenshot spread across Instagram, Bluesky, Reddit, and Canadian Facebook groups, where users identified Smith and linked her to Family First. Smith said she began receiving death threats, and the family cut the trip short, returning to Michigan on Tuesday 15 September.
Board Called the 'Lake America' Post 'Unacceptable'
In a written statement to ABC12, Smith apologised, calling the image 'insensitive, distasteful, and in poor judgment.' She added, 'I made a mistake. I own that mistake, and I am committed to learning from it.'
She also said she understood the anger in Canada. 'I understand if I was someone in Halifax and I thought a poor group of people walked in wearing those sweatshirts, it is highly offensive and I would understand why they would be so angry,' she told the station.
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Family First's board issued a separate statement saying the credit union 'unequivocally disapproves and rejects the content' of the post. It said Smith had acted in a personal capacity during a family holiday, without the credit union's authorisation or knowledge, and called the post 'unacceptable'. Directors said they were determining the appropriate next steps.
At least one member had objected. 'I do not agree with that,' Family First customer Zachary McDaniel told ABC12 outside the credit union.
Less than a week after the board's statement, Smith's exit was announced. In a post on its Facebook page, Family First apologised for 'the concern, disappointment and pain' the situation had caused and acknowledged that members 'may hold different perspectives about this decision.'
The Executive Order Behind 'Lake America'
Trump signed Executive Order 14422 on 27 August, days after trade talks between Washington and Ottawa collapsed. It directs the Interior Secretary and the US Board on Geographic Names to replace Lake Ontario with 'Lake America' in federal maps, documents, and records, and governs US federal usage only. Prime Minister Mark Carney said on X the lake would remain Lake Ontario 'then, now and always.'
On 31 August, US Representatives Tim Kennedy, Joe Morelle, and Debbie Dingell introduced the Hands Off Our Great Lakes Act, which would nullify the order and bar the renaming of any Great Lake.
'Canada is not our enemy. It is our neighbor, our ally, and one of Michigan's most important economic partners,' said Dingell, a Michigan Democrat.
Family First, founded in 1939 as the Saginaw Municipal Employees Credit Union, reported 5,405 members and $100.5M (£75.4M) in assets at the end of March, according to its call report to the National Credit Union Administration.
As of Friday 25 September, neither Smith nor the credit union had said publicly whether the post led to her departure. Family First has not said when it will name a permanent chief executive.
