FAYETTEVILLE, N.C.–The former president of Bragg Mutual FCU here has filed suit against the credit union and its board chairman, who is Republican state Rep. John Szoka of Cumberland County, alleging she was wrongfully and illegally fired due to her age and to punish her for being a whistleblower.
Ex-President/CEO Betty Eileen Donovan, who was fired in February, was with the credit union for more than 30 years until being named CEO in November 2015.
The suit alleges Bragg Mutual’s board failed to maintain all the corporate records that are required by federal law, according to a copy of the suit obtained by the Fayetteville Observer. Donovan alleges Szoka undermined her authority and that the board made decisions for his personal interests. Her suit claims Szoka treated her badly due to her age — she is 64 — which would be a violation of anti-discrimination laws, the Observer reported.
According to the allegations, “Bragg Mutual’s vice president of lending and marketing director secretly recorded conversations Donovan had with him, the suit says, and then he shared these recordings with a board member. Donovan fired the man in January, the suit says, but Szoka reinstated him that same day. Donovan says she then reported Szoka to the National Credit Union Administration, but Bragg Mutual backed him. On Feb. 15 the board fired her, the suit says. Szoka told her the board of directors “no longer trusted her judgment,” the suit says.”
Donovan is further alleging Szoka took credit for an upturn in the credit union’s fiscal health and operations during her tenure, from deficits to a surplus in 2017, “so that he could gain favor with his political constituents.”
Donovan is seeking back pay, lawyer fees, punitive damages and other compensation.
In a written statement to the Fayetteville Observer, Szoka said, “The board of directors and current management of Bragg Mutual Federal Credit Union strongly dispute Ms. Donovan’s claims and will be vigorously defending the credit union and its members against this lawsuit. There were legitimate reasons for the board’s decisions as they relate to Ms. Donovan’s employment status” and that he conducted himself at all times appropriately and in keeping with his duties and responsibilities at the credit union.”