KANSAS CITY, Mo.–The former vice president of a credit union has filed a lawsuit against her former employer, Kansas City Credit Union, alleging it violated the state’s whistleblower rules and federal law on money laundering after she was pressured to open accounts for friends of the CEO who were in marijuana-related businesses.
She further alleged the CEO had ties to the marijuana businesses and that she was fired for voicing her concerns.
According to the complaint filed in District Court for the Western District of Missouri, the former VP of operations, Sarah O. Calhoun, alleged she had been instructed to open the accounts for the marijuana-related businesses even though doing so would violate policies the credit union had in place, in addition to the state and federal laws.
Calhoun also served as interim CEO of the credit union prior to Nakia Richmond being named to the position, according to the lawsuit.
Concerns Over ‘Behavior’
Calhoun alleges in the suit that she was instructed by CEO Richmond to open the accounts personally, which were for friends of Richmond. Calhoun alleged she began to have “concerns regarding Richmond’s behavior and actions” in mid-2020, when Calhoun said she returned to work from maternity leave, and further alleges that at the same time “Richmond was gauging the Plaintiff’s willingness to assist in illegal conduct.”
Similarly, Calhoun alleged that at this time she also learned that Richmond had an ownership interest in a marijuana dispensary and that he had shown her pictures of the business.
“As an officer, the Plaintiff incidentally monitored and investigated conduct she thought would need to be reported to government entities, although those tasks were not in her job description or duties,” the suit states.
In March of 2021, Calhoun said she meet with a member of the CU’s board to present her concerns and that she had also been notified by other KCCU employees that the CEO had “requested that they violate KCCU policies,” according to the complaint. She said she also met with the credit union’s chairman, even though she had concerns over losing her job, and that Richmond had said to her around the same time that she was after his job.
Friends of CEO Open Account
In April of 2021, the lawsuit alleges that two friends of Richmond came to the credit union to open an account for a business called BK Wellness, LLC, with Richmond instructing Calhoun to open the new account. But Calhoun believed the business to be a marijuana-related company and for numerous legal and compliance reasons the credit union should not do business with the firm.
“Richmond told the Plaintiff that he knew the prospective account holders and that they were not running a business related to marijuana,” the lawsuit states. “Further, Richmond told the Plaintiff that she needed to open the account because he was her ‘boss’.”
Calhoun alleges in the suit she opened the account under Richmond’s “explicit direction.” In May 2021, Calhoun said she received an email that confirmed her suspicions that it was a marijuana-related business and that the BK stood for “Bubba Kush.”
In June, 2021, Calhoun alleges in the suit Richmond opened an account for a marijuana-related business called Smart RM, LLC, that he then later closed.
Allegations Recording Device Placed
The suit alleges that in early 2021 Richmond placed a recording device in the plaintiff’s office, on her computer, or both, as he was aware Calhoun had scheduled an appointment with the U.S. Equal Employment Opportunity Commission to discuss “filing a charge.”
Calhoun said she was also “troubled” by the recording device because she also had “personal” discussions at work.
“On the morning of August 9, 2021, as the Plaintiff arrived at work, she was met by Richmond and a Kansas City, Missouri police officer,” the lawsuit states. “Richmond told the Plaintiff that she was terminated effective immediately and that she was banned from the premises.”
Calhoun alleged she was not provided any reason for the termination, and that during her seven years with the credit union she had never heard of another employee being met by a police officer for a termination.
“To the best of the Plaintiff’s knowledge, Richmond took other KCCU employees to the Capital Grille to ‘celebrate’ the plaintiff’s termination,” the lawsuit states.
Questions Over Other Business
In the suit, Calhoun alleges she learned of another business owned by friends of the CEO that had opened an account with Kansas City Credit Union called True Level Investments, Inc. that she alleges did not satisfy the requirements for membership in the credit union. She said she later learned that there are marijuana dispensaries that operate under the name “Fresh Karma” that are owned by True Level.
Calhoun is seeking damages in excess of $75,000, twice the amount of backpay owed to her, with interest, compensatory damages, attorneys’ fees and more.