Omaha Tales of Sexual Abuse Ruled False - Sep 27, 1990 - New York Times
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Sep 27, 1990 Omaha Tales of Sexual Abuse Ruled False The New York Times Thursday, Late Edition - Final
A Federal grand jury concluded today that stories of sexual abuse and drug trafficking that swept this city and the state capital after the failure of a credit union here were unfounded.
The grand jury indicted Alisha Owen, a 21-year-old woman who had told a legislative committee that she was a victim of sexual abuse. She is charged with eight counts of perjury.
Shortly after the failure of the Franklin Community Credit Union in November 1988, there were widespread allegations, repeated by legislative leaders, that money from the union had been used to finance child prostitution.
The same grand jury last year indicted Lawrence E. King Jr., a prominent Republican who was manager of the credit union, on 40 counts of conspiracy, fraud and filing false tax returns in connection with the failure of the institution in November.
The Federal grand jury today indicted an officer of the credit union, Sandra Prucha, charging that she used expense vouchers to obtain cash and credit, then used the cash and credit for her personal use.