A whistleblower lawsuit filed Feb. 27 in New York District Courtclaims a former CEO of the $145 million Ukrainian National FCUsuffered discrimination and retaliation so severe it caused her tosuffer a heart attack and default on her mortgage loan.

Plaintiff Christine Balko claims in the suit that the NewYork-based credit union's board – in particular, long-timevolunteer Vsevolod Salenko – objected to her reporting of federalregulatory violations to the NCUA and retaliated against her.

The rift allegedly began with Balko reporting board electionbylaw and protocol violations, the purchase of prohibitedinvestments and the misappropriation of funds by a branch managerin May 2009, according to court documents. Those documents chargethat report triggered an NCUA audit that revealed an inadequategovernance model, lowered the credit union's CAMEL rating to a 4,earned it the troubled condition label and produced a Letter of Understandingfrom the regulator to correct findings.

Salenko, who has served as a volunteer at the credit union formore than 46 years, allegedly opposed a new NCUA-mandatedgovernance model that stripped board members of their operationaltitles and duties, according to Balko.

According to the suit, by year-end, Balko's position waseliminated and a new CEO was hired. However, Balko soon rejoinedthe credit union and was additionally elected to the board in March2010.

The suit claimed infightingescalated in early 2012 after loan documents allegedly concealed arenegotiated business loan rate for a board member who was aco-signer, and also concealed that the loan would put the creditunion over its 12.25% business loan to assets cap. Balko maintainedshe presented the loan for board approval without realizing thedocuments were incomplete; Salenko, serving as chairman of thesupervisory committee, allegedly seized upon the action, claimingBalko had misled the board and calling for an investigation.

Balko claims she suffered a heart attack because she became sodistressed about the investigation. A day later, on March 10,Balkocharged Salenko (seen left) called a special board meeting thatresulted in her termination. Balko was still recovering in anintensive care unit and unable to attend the meeting or answer thecharges.

After losing her job, Balko claims she fell behind on hermortgage payments and credit union staff offered her a modificationper NCUA guidance. Balko accepted the modification, but before theoffer closed, a Salenko-led board rescinded the workout at a June2012 board meeting.

Salenko and other volunteers named in the suit remain on thecredit union's board and supervisory committee, according to itswebsite. Natalia Pachashynska, accused in the suit of violatingNCUA regulations and credit union bylaws while a branch manager, isnow the credit union's CEO according to NCUA records and the creditunion's website.

For its part, the Ukrainian National's financials appear to bein order. As of Dec. 31, the credit reported net worth of 9.48%,loan losses below peer and a $213,000 net profit.

Balko is seeking recovery of unpaid compensation, a mortgagemodification, compensatory damages and punitive damages.–[email protected]