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Franklin Credit Union Probe Chambers Says Resolution To Embrace 13 Agencies - Jan 8, 1989 - Omaha World-Herald

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Jan 8, 1989 Franklin Credit Union Probe Chambers Says Resolution To Embrace 13 Agencies; [Sunrise Edition] James Allen Flanery. Omaha World - Herald. Omaha, Neb. pg. 9.B

Full Text (471 words)
(Copyright 1989 Omaha World-Herald Company)

A resolution to be introduced this week in the Nebraska Legislature will urge that a committee being formed to probe the collapse of the Franklin Community Federal Credit Union examine the "activities and responsibilities" of at least 13 federal, state and local agencies, State Sen. Ernie Chambers of Omaha said Saturday.

Chambers identified the agencies as the Governor's Office, the State Attorney General's Office, the Department of Social Services, Child Protective Services, the State Foster Care Review Board, the Douglas and Washington County Attorney's Offices, the Nebraska State Patrol and the Omaha Police Department.

And "to the extent possible," Chambers said, the examination will also embrace four federal agencies - the FBI, Internal Revenue Service, U.S. Attorney's Office and the National Credit Union Administration. The latter regulates U.S. credit unions.

Chambers and Schmit

At least four of the 13 agencies - the Nebraska Attorney General's Office, the FBI, the Nebraska State Patrol and the Douglas County Attorney's Office - have been conducting their own probes of Franklin's Nov. 4 collapse.

Chambers said the resolution also will urge an examination of "any other affected law enforcement agencies" as well as "other agencies, boards, commissions, entities or persons" in connection "with the failure of Franklin and related issues."

The examination will focus on "policy-making, oversight, regulatory, investigative, law-enforcement or other" activities and responsibilities of the agencies in question, he said.

Chambers said the resolution that he and State Sen. Loran Schmit of Bellwood will introduce will propose the names of senators to serve on the Legislature's investigative committee. He said the full Legislature will have to approve the membership.

I expect to have a full committee by the end of next week," Chambers said.

He said he expected the committee will have fewer than 10 people.

The resolution goes into more detail than one approved in November during a special session of the Legislature, Chambers said.

Abuse Issue

"This is to make people aware in more detail of what direction we are going," Chambers said.

"I expect it will be unanimously approved."

Chambers and Schmit have said previously that alleged physical and sexual abuse of young people is one of the Franklin-related issues that the Legislature should consider investigating.

Last month, three Foster Care Review Board officials met with the Executive Board behind closed doors to discuss reported instances of abuse.

Chambers said Saturday that he hopes the committee probe will focus heavily on the actions of E. Thomas Harvey Jr., director of accounting at Franklin.

Harvey's attorney, James E. Schaefer, said last week that Harvey would probably take the Fifth Amendment if he were called to testify before the legislative committee.

"We must honor a person's Fifth Amendment rights not to testify," Chambers said.
But, he said, that "won't stop" the committee from probing Harvey's actions with regard to Franklin.

Credit: World-Herald Staff Writer

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