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King Tells Radio Interviewer Role at Franklin Was Limited - May 4, 1989 - Omaha World-Herald

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May 4, 1989 King Tells Radio Interviewer Role at Franklin Was Limited; [Metro Edition]
Omaha World - Herald. Omaha, Neb. pg. 14

Full Text (294 words)
(Copyright 1989 Omaha World-Herald Company)

Lawrence E. King Jr. said Thursday that his role at Franklin Community Federal Credit Union was limited.

In the past, King has said he wasn't directly involved in certificate-of-deposit sales and other activities that took place at Franklin. He repeated that contention during a two-hour interview on radio station KKAR.

King, who was Franklin's manager and treasurer, said his main functions were to keep Franklin "visible in the community" and to see that qualified employees performed various functions.

"The president of any bank is not sitting in the bookkeeping department," King said. "I saw reports that came to me."

The credit union was closed by federal authorities Nov. 4.

The National Credit Union Administration, the federal agency that regulates credit unions and insures deposits, contends that Franklin hid most of its CD sales in secret computer records. About $8 million is missing, the NCUA Csays.

The NCUA has filed a civil lawsuit against King, alleging that he diverted at least $4 million of Franklin's funds for improper purposes.

King said he doesn't understand those figures and believes the credit union's actual assets were much lower.

"The highest figure I ever saw was $0 million," he said.

The assets were less than $0 million when Franklin was closed, he said.

Franklin's normal financial records showed it had $.5 million in assets shortly before it was closed.

During the interview by KKAR manager Steve Brown, King said he is bothered by being the object of gossip.

"People enjoy watching other people be crucified," he said.

King complained about news coverage by The World-Herald and television stations, saying much of it is false.

Asked for specifics, King cited "sex allegations." He added: "They say these things are not proved, and then they go ahead and list them."

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