She also was charged with fraud, constructive fraud, breach of fiduciary duty and unjust enrichment. The filings also asked the court to permit it to freeze the accounts of Reynolds and relatives at the credit union.

In her formal reply, Reynolds denied the charges and counter sued credit union board members charging that the failure to release the funds is civil theft. She also claimed in her denial that the credit union leadership knew and approved of her choices for contractors.

“Plaintiff, acting through its operations director and/or IT technician, hired Defendant's son to perform cabling work for it, knowing he was Defendant's son and after approving a proposal he submitted to do the work at below market rates,” Reynolds wrote in the reply. “In addition, the Chairman of Plaintiff's Board of Directors, Jack Bowman, was aware of and never objected to the arrangement,” she added in the filing.