The Michigan credit union CEO behind the viral AI-generated "Lake America" photo is no longer with the company.
Jane Smith is no longer an employee of Family First Credit Union, effective immediately, the credit union confirmed Wednesday.
Chief operating officer Jason Acosta has taken over as interim CEO.
What Family First hasn't said is how Smith's employment ended.
The credit union has not said whether she resigned or was terminated, and hasn't given a specific reason for her departure.
But the announcement comes less than a week after its board publicly rejected Smith's post and said it was determining its "next appropriate steps."
The credit union acknowledged Wednesday that people may have different opinions about the decision.
"Our responsibility is to act in the best interest of the Credit Union, uphold the trust of our members and continue putting our community first," Family First said.
It also apologized for the "concern, disappointment and pain" the situation caused its members and community.
For anyone who has followed this from the beginning, it's the third major turn in less than two weeks.
First came the photograph that appeared to show a group of Americans travelling to Halifax in matching "Lake America" sweatshirts.
Then came the explanation: the sweatshirts never existed. The image had been altered with ChatGPT.
Now the CEO who created and shared it is out.
The board had already put Smith's job under scrutiny
The clearest connection between the controversy and Wednesday's announcement is what Family First's own board said last week.
After Smith was identified as the person who created the image, the board issued a statement distancing the credit union from her post.
It said it "unequivocally disapproves and rejects" the content.
The board said Smith created and shared the post in her personal capacity, while on a family vacation, without the credit union's authorization or knowledge.
It also said her conduct did not reflect Family First's values, mission or culture, and that the credit union supported and respected its Canadian neighbours.
Most significantly, it said the board was "determining the next appropriate steps regarding this matter."
Smith was still CEO at that point.
She isn't anymore.
Family First hasn't said whether Wednesday's departure resulted from those deliberations, so it would be wrong to report that the board fired her over the photo.
What can be said is that the board announced it was considering next steps, and days later Smith was no longer employed there.
What Actually Happened With the 'Lake America' Photo
We've covered this from the start, and what appeared to have happened turned out to be very different from what did.
When the image began spreading in Canada, it appeared to show four Americans at an airport in matching navy blue "Lake America" sweatshirts before travelling to Halifax.
That was the basis of our first story.
The photograph was real. The sweatshirts were not.
Smith later explained that the family took the original photo at Detroit Metropolitan Airport before flying to Halifax on September 11, then used ChatGPT to alter it so everyone appeared to be wearing the shirts.
She posted the edited version to her private Facebook page with the caption: "Like our sweat shirts? Not sure Canada will. Lol lol."
She said her post carried an indicator identifying the image as AI-generated. Her sister later took a screenshot and posted it publicly, and that version didn't carry the indicator.
From there it spread widely in Canada as if the family had actually shown up wearing the shirts.
They hadn't.
Our full account of what happened is here.
Why "Lake America" hit a nerve
The image landed in Canada weeks after Donald Trump signed Executive Order 14422 on August 27, directing the U.S. federal government to rename Lake Ontario "Lake America."
The order requires the U.S. Board on Geographic Names and federal agencies to use the new name in federal maps, documents and communications. It doesn't change what Canada calls the lake.
Smith said the family was joking about the change rather than making a political statement.
"We weren't trying to make a political statement," she told ABC12, saying they were "kind of poking fun" at the name being changed.
Whatever the intention, it was read very differently once it circulated without the context that it had been altered.
Smith apologized, and it kept growing
Smith eventually apologized publicly, calling the image "insensitive, distasteful, and in poor judgment."
She said it didn't depict a real event but acknowledged people were hurt and offended by it.
"I made a mistake. I own that mistake, and I am committed to learning from it," she said.
By then the story had moved well past her original post. People online had identified her, connected her to Family First, and found personal social media accounts belonging to people in the photograph.
Smith told ABC12 she began receiving death threats.
Her family cut short what had been planned as a 10-day visit to Halifax and returned to Michigan on September 15.
"I think the AI can be dangerous in the fact that it can make people think something's real that's not," she said.
Family First is a small, member-owned credit union
This wasn't the CEO of a multinational bank.
Family First is a member-owned financial institution in Michigan's Saginaw area, with roughly $97 million in assets and about 5,300 members.
That helps explain why the distinction between Smith's personal conduct and the institution itself mattered so quickly to the board. At a community credit union, the chief executive is one of its most visible representatives.
Family First made a point last week of saying Smith acted personally and without its knowledge.
It's now making a different point. Smith no longer works there.
What Family First still hasn't said
Several questions remain open.
Whether Smith resigned or was terminated.
The specific reason her employment ended, and what was discussed before the decision.
How long Acosta will serve as interim CEO, and how Family First plans to choose a permanent replacement.
Twelve days
The sequence moved quickly.
On September 11, Smith and her family were at Detroit Metropolitan Airport preparing to fly to Halifax when the photograph was taken and altered.
Within days, a version without the AI indicator was circulating widely in Canada.
The family returned to Michigan early on September 15, after Smith said she received death threats.
Smith then publicly explained how the image was made and apologized. Family First's board rejected the post and announced it was considering what to do next.
On September 23, Smith is no longer an employee and Acosta is running the credit union on an interim basis.
What still isn't known is whether Smith decided to leave, or Family First decided she had to.
Sources
Family First Credit Union CEO out after AI post controversy — Kevin Craft, ABC12 WJRT, September 23, 2026
Family First CU CEO Out Following 'Lake America' AI-Photo Controversy — CUToday
Executive Order 14422 — The White House, August 27, 2026
Smith's comments and the board statement as reported by ABC12.
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