V.I. Superior Court Judge Douglas Brady has denied the V.I. Housing Finance Authority’s motion to dismiss a whistleblower complaint by former chief operating officer Stephanie Berry and ordered that both parties “meet and confer” within 45 days to consider, among other matters, the possibility of a prompt settlement.

Berry alleged in her lawsuit filed Dec. 1 that the authority stands to “lose millions of dollars through recapturing of federal funds due to noncompliance with policies and procedures,” and that projects funded by the Federal Emergency Management Agency are at a standstill because of inaction by VIHFA leadership.

After expressing concerns internally, Berry claimed that VIHFA Executive Director Eugene Jones Jr. cautioned that “if she kept putting things in writing, it would be to [her] detriment.” The suit also names Chief Disaster Recovery Officer Dayna Clendinen, who served as the authority’s interim executive director for much of Berry’s tenure.

Berry, who was hired by the VIHFA in January 2023, was subsequently fired in October.

In addition to claiming a violation of the Whistleblower Protection Act, Berry claims breach of contract, defamation, and that Jones and Clendinen tortiously interfered with her employment at VIHFA.

The VIHFA responded forcefully to Berry’s allegations in January through a combined motion to dismiss and memorandum of law, saying that she was a disgruntled employee and that her lawsuit is nothing more than retribution for being fired...

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