A former employee of the conserved People Trust Community Federal Credit Union in North Little Rock, Ark., alleged she was fired while on medical leave, according to a new lawsuit filed earlier this month in federal court.
Sheena C. Frazier also alleged the credit union retaliated against her after she raised concerns about workplace structure, communication and operational transparency.
During her employment, Frazier said she was diagnosed with a serious medical condition, which substantially limited her ability to speak. She informed the credit union's management about the condition, which was not identified in court documents, and requested medical leave. The credit union approved the request.
Frazier was fired in July 2025 while still on medical leave, although the credit union allegedly told her that its decision was not related to her job performance.
"Defendant instead cited vague and non-specific 'organizational priorities,' which do not constitute a legitimate nondiscriminatory reason," the lawsuit stated. "The timing of the Plaintiff's termination – while on protected medical leave – creates a strong inference of discrimination and retaliation."
Frazier also alleged the $1.4 million People Trust Community failed to make reasonable accommodations for an employee with a disability, as required by federal law, unless doing so would create an undue hardship for the employer.
She further claimed the employment decisions affecting her job were made or approved by former People Trust Community President/CEO Arlo Washington. He was removed from his position after the NCUA conserved the credit union in January for its unsound and unsafe practices.
Frazier also alleged People Trust Community took actions to restrict or remove her access to relevant communications regarding her employment and medical leave, including the recall of emails and deletion of electronic communications.
"Such actions raise serious concerns regarding spoliation of evidence and support an inference that the missing evidence would be unfavorable to Defendant," Frazier stated.
The NCUA declined to comment on the discrimination lawsuit.
On March 31, Washington asked U.S. District Judge Brian S. Miller in Little Rock to grant a temporary restraining order (TRO), citing reports from People Trust Community members that the NCUA planned to liquidate the institution on April 3. Washington argued he would be irreparably harmed by the closure.
Judge Miller denied Washington's TRO motion on April 3 because he failed to demonstrate he would suffer irreparable harm if the credit union were liquidated.
The liquidation did not occur, and People Trust Community continues to operate under conservatorship.
However, other legal motions and notices have been recently filed by Washington for the court's consideration.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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