Former Director of Treasury Lucy Nunez has filed a lawsuit against the Government of the Virgin Islands and Finance Commissioner Kevin McCurdy, alleging violations of the Virgin Islands Whistleblower Protection Act after she was demoted following complaints about financial mismanagement within the Finance Department.
According to the lawsuit, Nunez raised concerns about inefficiencies and lack of internal controls within the Treasury Division. On Oct. 8, 2024, she sent a letter to Gov. Albert Bryan Jr. requesting a meeting to discuss these issues and questioning McCurdy’s leadership. Although Bryan did not meet with her directly, his Chief of Staff, Kevin Williams, arranged a meeting on Oct. 24, 2024, confirming the discussion through email.
Shortly after that meeting, Nunez alleges that McCurdy began sidelining her, assigning treasury director duties to lower-ranking employees and making disparaging comments about her qualifications. In one instance, she claims McCurdy told her she needed to “prove her worthiness” for the position because she was “a Latina born in Puerto Rico rather than in the Virgin Islands.”
The complaint further states that on Dec. 5, 2024, Nunez received an email from McCurdy informing her that she had been reassigned to a lower-ranking position as financial manager at the Bureau of Information Technology. She contends that she had not applied for or expressed interest in the new position, nor had she been given any justification for the transfer. A letter from the governor, dated Nov. 6, 2024, officially confirmed the reassignment, stating that her position as treasury director had been eliminated. A senior government official, speaking to the Source on condition of anonymity due to the sensitivity of the matter, suggested that the position at the Finance Department was not a “good fit” for Nunez and that she was offered another role at a different agency but declined the opportunity.
Nunez’s lawsuit asserts that her demotion was a direct act of retaliation for reporting irregularities and financial reporting failures within the Finance Department. In her initial letter to Bryan, she highlighted discrepancies in cash management processes and the department’s failure to implement stronger internal controls, findings she said were in line with reports from BDO auditors. Despite her efforts to push for necessary reforms, she claims that leadership resisted change and ultimately sought to remove her from her position.
“Even before contacting the Governor’s Office, I addressed my concerns directly to Commissioner McCurdy in a meeting that was recorded,” Nunez stated in her complaint.
Responding to the Source’s request for comment Tuesday, Bryan said, “Everyone that’s in the Virgin Islands that gets fired sues. I am not at liberty to discuss personnel matters but one must ask what is not being said. The government is in the business of retaining excellent employees.”
Nunez is seeking reinstatement as treasury director, back pay, compensation for lost benefits, and damages for emotional distress. She is also requesting punitive damages against the government of the Virgin Islands and McCurdy.
This lawsuit is among other recent whistleblower cases in the Virgin Islands. In November 2024, Peter Chapman, former executive director and CEO of the University of the Virgin Islands Research and Technology Park, filed a lawsuit alleging unethical and illegal behavior by the corporation’s board. Chapman claimed that under his leadership, the RTPark’s revenue tripled, but he faced retaliation for opposing efforts by board members to divert funds for non-statutory purposes, including projects unrelated to RTPark’s mission. His contract was not renewed in April 2024, leading to the lawsuit alleging violations of the Whistleblower Protection Act.
In late January 2025, Chapman asked a federal court to enter a default judgment against RTPark and its board chair after they failed to respond to the suit.
Similarly, Stephanie Berry, former Chief Operating Officer of the Virgin Islands Housing Finance Authority, filed a whistleblower lawsuit in November 2024. Berry alleged systemic failures and unauthorized financial practices within the VIHFA and claimed she was terminated in retaliation for reporting these issues. Her lawsuit highlights concerns about financial mismanagement and lack of internal controls within the agency. In response, VIHFA filed a motion to dismiss in January 2025, characterizing Berry as a “cantankerous” employee upset over her firing and denying the allegations of mismanagement and retaliation.
Meanwhile, Nunez’s legal team argues that her reassignment was not only a violation of the Whistleblower Protection Act but also an effort to suppress oversight and silence employees who raise concerns about financial management.
The case is pending before the Superior Court of the Virgin Islands.
