WAYNE, N.J. – The former president of First Jersey CU filed a whistleblower suit against the credit union claiming the she was fired for retaliation due to her notifying state examiners about extensive travel expenses accrued by her directors.
In a suit filed in state court, Joanne Lazzara says the directors violated the credit union’s travel policy by going on lavish trips around the world at credit union expense, and then fired her for flagging the violation. The trips included credit union conferences in such far-flung places as Panama, Scandinavia, Alaska and the Mediterranean, some that cost the credit union as much as $13,000, more than double its $6,000-per-trip limit.
The travel expenses were eventually cited by state examiners and "lavish" and "gratuitous" and the directors were forced to repay anything over $6,000. As a result, the board changed its travel policy last year to restrict out of state trips and the number of people who could travel at the same time, and also removed the dollar limit for expenses.
Credit union officials did not return phone calls seeking comment on the suit.
The trips include a Scandinavian credit union conference cruise and an Alaska cruise, where the board members took their spouses with them, and booked the most expensive cabins. The credit union, which serves current and former postal workers, denies Lazzara was let go as retaliation, and disputes the characterization of the trips.
The court documents show, for example, that Board Chairman Edward Sinning went on a Scandinavian credit union conference cruise with his wife in 2007 and billed the credit union for $13,000. They reserved the most expensive cabin possible -- an oceanfront suite with a balcony.
On another occasion, board member Bruce Grygus, took a 13-day cruise to Alaska with his wife which cost almost $13,000, the suit claims.
