Sunday, June 25, 2017

Franklin Memo 'Is as Stated' Ex-Banking Chief Beverage: 'No Reason to Fabricate'- Aug 1, 1989 - Omaha World-Herald

Not for commercial use. Solely to be used for educational purposes

Aug 1, 1989 Franklin Memo 'Is as Stated' Ex-Banking Chief Beverage: 'No Reason to Fabricate'; [Sunrise Edition] Robert Dorr. Omaha World - Herald. Omaha, Neb. pg. 14

Full Text (432 words)
(Copyright 1989 Omaha World-Herald Company)

Former Nebraska Banking Director Roger Beverage said Monday that he has "no reason to fabricate anything" about his 1984 meeting with a former employee of the failed Franklin Community Federal Credit Union.

The former employee, Edward Hobbs, has said he wrote a memo giving details about embezzlement at Franklin. He was fired the day after he showed the memo to Lawrence E. King Jr., Franklin's chief executive, he said.

A three-member Franklin committee investigated the Hobbs memo and told the credit union's board of directors the memo was wrong and there were no improprieties. The board accepted that report and took no action.

Hobbs said he visited Rep. Peter Hoagland, D-Neb., then an Omaha attorney and member of the Nebraska Legislature. Hoagland said he sent Hobbs to Beverage.

Not About Embezzlement

Beverage, now executive vice president of the Oklahoma Bankers Association, said he talked to Hobbs about "sexual preferences and hiring practices" at Franklin but not about embezzlement.

State Sen. Ernie Chambers of Omaha sent Beverage a letter saying Beverage's account of the meeting with Hobbs "lacks logic and reasonableness."

Beverage responded: "I regret that you think my recollection of the event in question lacks logic and reasonableness. . . . My recollection is as stated."

Beverage said the State Banking Department had no authority over Franklin, and he referred Hobbs to the National Credit Union Administration. Hobbs says he called someone at the NCUA's Sioux City, Iowa, office. The NCUA says it has no record of such a call.

Hobbs said earlier that he gave both Hoagland and Beverage a copy of the memo he wrote. Both say they don't recall receiving a copy of the memo.

NCUA general counsel Robert Fenner of Washington, D.C., said the NCUA has a copy of the memo and it includes a statement that Hobbs had talked to an attorney.

'Remembers It Wrong'

Fenner said Hobbs told him the attorney mentioned was Hoagland. That means Hobbs must have written the memo after he talked to Hoagland, he said. Thus, Fenner said, he believes Hoagland and Beverage are correct in saying they didn't get the memo.

Fenner said he thinks Hobbs is sincere, but "I think he remembers it wrong."

Told of Fenner's statement, Hobbs said: "I have no reason to lie. I do recall giving them a copy of my memo."

Hobbs said the memo's reference to an attorney concerned a phone call he made to Hoagland. Later, he visited Hoagland and gave him a copy of his memo, Hobbs said.

Both the NCUA and Hobbs declined to give The World-Herald a copy of the memo.

Credit: World-Herald Staff Writer

The Morgue Menu