Nutmeg State Financial Credit Union is refuting allegations brought about by two of its former executives who say they were fired in retaliation for exposing questionable accounting practices.

In a statement to the Commercial Record, Lisa Asadourian, senior vice president and chief engagement officer at the credit union, said that the $397 million credit union has always acted in compliance with federal regulations.

Late in May, former CFO Timothy Ross and former vice president of lending Shannon Hall brought a lawsuit against the Rocky Hill credit union in Hartford Superior Court, alleging they were wrongfully terminated for attempting to uncover what they said were illegal accounting practices.

“The credit union is following all Generally Accepted Accounting Practices (GAAP), as confirmed by an independent external audit performed by Nearman, Maynard, Vallez CPAs, P.A.,” she said. “The outsider auditors directly refute the sensationalized claims made in this lawsuit and reinforce the fact that the lawsuit has no merit. The outside audit further confirms that the financial health of the credit union is stronger by comparison to other credit unions in the Northeast United States, with a higher net worth ratio and higher return on average investments and lower delinquent loan ratio.”

According to a financial performance report available on the National Credit Union Administration’s website, Nutmeg State Financial posted a ratio of net worth to total assets of 13.23 percent and a return on average assets of 0.45 percent in March of this year. The NCUA puts the peer average for those metrics at 10.83 percent and 0.50 percent, respectively.

Asadourian concluded her statement with, “Nutmeg remains committed to the financial well-being of our members, as we have always been, and will continue to provide the best in rates, service and financial stability every member has come to expect.”