A whistleblowerlawsuit filed by Christine Balko, former CEO of the $145million Ukrainian National FCU, is headed to mediation. Accordingto June 10 documents filed in U.S. District Court in New York,Balko and the New York-based credit union were referred to thecourt-annexed mediation program by Judge Andrew J. Peck. However,the mediation will have no effect upon any scheduling order issuedby the court without leave of the court.

Balko filed the suit Feb. 27, claiming the credit union's boardretaliatedagainst her after she reported to the NCUA board election bylawand protocol violations, the purchase of prohibited investments andthe misappropriation of funds by a branch manager. She claimed theretaliation caused her to suffer a heart attack and default on hermortgage loan.

On May 31, the credit union filed its answer to Balko's claims,denying her discrimination claims but admitting to NCUA supervisoryaction and a forensic audit at a branch that revealed unauthorizedtransactions had been performed.

The credit union also presented several defenses.I n addition totypical claims of a lack of subject matter jurisdiction and failureto make a claim upon which relief can be granted, attorney PhilipK. Davidoff also said the credit union was unaware Balko madecomplaints to the NCUA, and thus could not have retaliated againsther. Davidoff also said in court documents the credit union'sdecision to terminate Balko was based upon legitimate,non-discriminatory, non-retaliatory business reasons.

“Plaintiff's claims are barred because even if any adverseemployment actions by UNFCU toward Plaintiff were motivated in partby Plaintiff's alleged reports of illegal activity, which they werenot, UNFCU would have made the same employment decisions regardlessof such claims,” the legal answer said.