Former BCU chief executive Lyndon Kingston, 51, of Windsor, Brisbane, is locked in a bitter legal dispute over allegedly unpaid bonuses after he was sacked on October 18 last year.

Court filings state Mr Kingston had engaged in “serious misconduct” by failing to return five devices and exceeding his delegated authority limit of $250,000 by entering into contracts with four consultants to BCU which he was “never authorised” to do.

The company also alleges Mr Kingston “lied” when he told a director he did not know who had made a board appointment, when he in fact was the person who had signed the letter of appointment.

The company is now counter-suing to recover millions in payments he allegedly unjustifiably made to himself and his wife, according to documents filed in Queensland’s Supreme Court.

Mr Kingston was headhunted by BCU from his previous position as a senior manager at Australian Prudential Regulation Authority nearly 10 years ago.

In the court documents, the credit union alleges Mr Kingston provided wife Anna with a “sham redundancy” of $345,030 and then paid her another $341,920 over 18 months to do “substantially the same (albeit less) work for BCU” as a consultant to the company.

After her redundancy payout, Mrs Kingston was earning $1000 a day despite performing “at most four-and-a-half hours per day (before any lunch or other breaks) for any work that she did do for BCU”, the company alleges.

An email from Mrs Kingston to her husband mentioning her daily duties were “keeping the house clean, making dinner, doing washing, going to the gym and looking after their children” showed the contract with her company, Sparkle Consulting, was “uncommercial”, the company alleged.

The credit union also alleges the couple claimed “sham” living away from home allowances in 2014 when they began living just 1.6 kilometres from BCU’s corporate office in Newmarket Road, Windsor.

BCU also alleges Mr Kingston “dishonestly made false representations” about his travel, accommodation and incidental expenses and says he was not entitled to them because he resided in Brisbane and did not incur the expenses claimed.

According to the court filings, Mr Kingston also allegedly falsified his employment contract by inserting a clause that he had written, and redirected $34,000 in superannuation to his pay packet which the credit union claimed left it in breach of its legal obligations.

After his sacking, BCU alleges Mr Kingston used a lawyer to make an “improper proposal” to the company’s chairman of a $250,000-a-year consultancy if he stood down and reinstated Mr Kingston.

This showed he was not a “fit and proper person to act as CEO” of any lender, BCU stated in court papers.