Charged in Missing $38 Million Kings to Trial Dec. 1 In Franklin Credit Case - June 13, 1989 - Omaha World-Herald
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June 13, 1989 Charged in Missing $38 Million Kings to Trial Dec. 1 In Franklin Credit Case; [Metro Edition] David Thompson. Omaha World - Herald. Omaha, Neb. pg. 1
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(Copyright 1989 Omaha World-Herald Company)
The trial of Lawrence E. King Jr., manager of the failed Franklin Community Federal Credit Union, and his wife has been tentatively scheduled to begin Dec. 1 by U.S. Magistrate Richard Kopf.
The date was determined during a conference of prosecution and defense attorneys in Kopf's office Tuesday.
King and his wife, Alice Ploche King, were indicted May 19 on fraud and federal law violations arising from the disappearance of $38 million from Franklin's treasury. The Kings pleaded not guilty May 23.
Under the Speedy Trial Act, defendants must be brought to trial within 70 days of their arraignment, but attorneys for King and his wife each filed motions saying that they gave up their right to a speedy trial because of the complexity of the case.
The case involves a large number of documents seized from the main office of the credit union the day after it was raided by federal investigators. The investigators rented a trailer to haul away the documents to an undisclosed location.
Request for Time
Defense attorneys asked for time to "locate, photocopy, examine and prepare documents for trial."
Prosecution investigators pored over the documents from November through last month, when the indictment was handed up by a federal grand jury.
The indictment accuses King of one count of conspiracy, one count of embezzlement, two counts of filing false federal income tax returns, four counts of filing false federal credit union reports, five counts of bank fraud, 11 counts of mail fraud and 16 counts of wire fraud.
The indictment also accuses Mrs. King of one count of conspiracy, two counts of bank fraud and nine counts of wire fraud.
Three former Franklin development officers also indicted face trial June 26 in federal court on income tax evasion charges. They are: Robert Morley, 35, of Ashland, Neb.; Noel Seltzer, 37, of 3806 Patterson St.; and Larry J. Murray, 39, of 4001 N. 42nd St. Morley also faces a charge of perjury before a grand jury.
Harveys Plead Guilty
Two others charged as a result of the Franklin shortages, E. Thomas Harvey Jr., 46, of 4904 Curtis Ave., and his mother, Mary Jane Harvey, 68, of 6318 N. 63rd St., pleaded guilty Monday to bank fraud and tax evasion charges.
Their pleas were part of a bargain with federal prosecutors in which they agreed to cooperate in the investigation and to testify in trials of others charged in the Franklin case.
In exchange for their guilty pleas to one count of bank fraud by embezzling about $1 million and to one count of federal income tax evasion in 1987, government attorneys agreed not to bring further criminal charges against them for Franklin activities.
They also agreed not to prosecute Mrs. Harvey's husband, Earl Thomas Harvey Sr., and their daughter, Cindy, for any activities at Franklin or Consumer Services Organization, a Franklin affiliate.
E. Thomas Harvey Jr. was Franklin's chief accountant, and Mary Jane Harvey helped King form Consumer Services Organization. Cindy Harvey was employed at Franklin at one time.
Those who participated in the conference with the magistrate were First Assistant U.S. Attorney Thomas Thalken; attorneys Steven Achelpohl and Marilyn Abbott, who represent King; and attorney Jerold Fennell, who represents Mrs. King.
The tentative schedule drafted by Kopf calls for attorneys to complete their discovery procedures by Oct. 1, file all pre-trial motions by Nov. 15 and be ready for trial Dec. 1.Credit: World-Herald Staff Writer