A former senior finance official at the Jersey City Housing Authority has filed a lawsuit alleging retaliation, discrimination and harassment after objecting to what she calls illegal directives by agency supervisors.
Complaint filed in state court
The suit, filed in Hudson County Superior Court on July 21, was brought by Arlyn Agustin, who worked at the housing authority from 2013 to 2025. Agustin named the agency and three senior staff members as defendants: Executive Director Stephen Cea, Chief of Staff Elizabeth Phillips-Lorenzo and Deputy Executive Director Kenneth Pinnock.
Agustin, who served as the authority’s chief financial officer, alleges a series of improper practices and retaliatory acts after she raised concerns about agency compliance with federal rules and internal controls.
Allegations outlined in the suit
The lawsuit lists several specific allegations that Agustin says she discovered while acting as CFO. According to the complaint, those include:
- Approval of donated sick leave to an employee who was not entitled to the benefit.
- Reimbursement of federal funds to Ms. Phillips-Lorenzo for staff lunches, in violation of federal rules.
- Approval of payment for vehicles purchased prior to obtaining required federal approval.
- Removal of Agustin from the role of approving invoices and purchase orders.
- Pressure from a superior to process paid time off (PTO) payments for the authority’s director of human resources, who reportedly took eight months of leave despite having no remaining PTO, and disciplinary action against Agustin when she refused.
“[Agustin] said Cea did not 'respond to Ms. Agustin’s complaint about the reimbursement Ms. Phillips-Lorenzo received,'” the complaint states.
The suit describes an episode in which Agustin says Pinnock became "angry and aggressive" and demanded she approve payments for vehicles. It also alleges that Phillips-Lorenzo issued what Agustin calls "unwarranted discipline" — a verbal warning — after Agustin declined to process PTO payments for the HR director.
Officials and agency response
NorthJersey.com reported that there was no immediate response from the Jersey City Housing Authority about the lawsuit. The complaint seeks relief under state and federal laws for retaliation, discrimination and harassment; it also raises concerns about noncompliance with federal funding rules.
| Allegation | Individual(s) named |
|---|---|
| Improper donated sick leave approval | Unnamed employee; alleged agency approval |
| Reimbursement of federal funds for staff lunches | Elizabeth Phillips-Lorenzo |
| Payment for vehicles before federal approval | Agency leadership; Kenneth Pinnock implicated in demanding approvals |
| Removal of CFO approval authority | Arlyn Agustin alleges action by agency leadership |
| Pressure to process PTO for HR director without PTO balance | Elizabeth Phillips-Lorenzo |
Implications for oversight and residents
The allegations, if substantiated, touch on the housing authority’s handling of federal funds and internal financial controls. Public housing authorities rely on clear compliance with federal rules to maintain funding and trust; questions about reimbursements and procurement procedures can trigger audits or corrective actions by federal or state oversight bodies.
Residents and tenants of housing authority properties typically depend on these agencies for safe, affordable housing. Mismanagement or disputes within leadership can affect everyday operations, vendor payments and the delivery of services to residents, though the suit itself does not detail specific impacts on tenants.
The lawsuit seeks remedies through the courts. It is scheduled to proceed through the state Superior Court system, where the housing authority and named employees will have an opportunity to respond to the allegations.
WE NEWS will monitor court filings and any official responses from the Jersey City Housing Authority as the case moves forward.
