VIENNA, Va. — A former Navy Federal Credit Union employee has filed a lawsuit alleging the institution discriminated against her by firing her over criminal charges while retaining non-Hispanic colleagues who faced criminal allegations, according to a report by Human Resources Director.
The complaint, filed Oct. 26 in U.S. District Court for the Eastern District of Virginia, alleges wrongful discharge and discrimination under Title VII of the Civil Rights Act and the Virginia Human Rights Act. The former employee, who identifies as Hispanic, is seeking $56,966 in lost income, $350,000 in punitive damages, interest and court costs. She has requested a jury trial.
According to Human Resources Director’s account of the complaint, the woman worked for Navy Federal for 11 years, including as a bankruptcy specialist with access to sensitive financial information. She said she was nominated several times for employee of the month and received a “WOW award.”
Under Criminal Investigation
During August 2024, Navy Federal learned she was under criminal investigation involving workers’ compensation transactions associated with a contracting business in which she had an interest, the complaint alleges. The alleged conduct was unrelated to Navy Federal, its members, accounts or resources, according to the filing.
The employee alleges she cooperated with the credit union’s internal inquiry, agreeing to participate when contacted Sept. 5, 2024, sitting for an interview the next day and providing a written statement Oct. 7. She said she furnished a doctor’s note when a subsequent interview had to be postponed, offered other dates and volunteered to participate by telephone, but the investigator never rescheduled.
Additional Allegations
The investigator told her Dec. 6, 2024, that the internal investigation was closed, the complaint states. She alleges she continued performing the same duties with the same access to sensitive information and did not misuse her position or violate credit union policies.
On May 7, 2025, prosecutors filed three felony counts of obtaining money by false pretenses and three felony forgery count s, according to the complaint. Navy Federal terminated her June 4, 2025.
The complaint alleges the credit union told her she could jeopardize member accounts and that federal law required her dismissal. She disputes both explanations, arguing that Navy Federal had allowed her to continue in the position for months after learning of the investigation.
Disparate Treatment Alleged
Human Resources Director reported that the lawsuit identifies four other workers, by initials, whom the plaintiff alleges were treated more favorably despite criminal matters: a bankruptcy specialist convicted of driving while intoxicated who received a suspended 30-day sentence; another bankruptcy specialist charged with public intoxication; a loan protection program supervisor charged with possession of marijuana with intent to distribute; and a bankruptcy supervisor charged with shoplifting. The complaint says all four remained employed.
The plaintiff alleges those non-Hispanic employees held positions of comparable trust. Her complaint also cites federal credit union regulations that she contends support retaining employees until conviction rather than automatically dismissing them upon the filing of charges.
Five of Six Charges Dismissed
According to the complaint, five of the six felony charges against her were dismissed Feb. 26, 2026. The remaining charge, obtaining money by false pretenses, was reduced to a misdemeanor. She received no active jail time or fine and was ordered to pay court costs.
The former employee also alleges she obtained unemployment benefits after Navy Federal did not establish in that proceeding that she had been discharged for cause.
The lawsuit asserts three counts: wrongful discharge in violation of public policy, discrimination under Title VII and discrimination under the Virginia Human Rights Act.
The allegations are those of the former employee and have not been proven in court. No judicial findings on the merits were identified in the Human Resources Director report.
