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Trial is Delayed in Omaha Scandal - Mar 31, 1990 - New York Times


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Mar 31, 1990 TRIAL IS DELAYED IN OMAHA SCANDAL The New York Times Saturday, Late Edition - Final

A Federal magistrate said today that Lawrence E. King Jr., a prominent businessman who was once active nationally in the Republican Party, is mentally incompetent to stand trial on charges of conspiracy and fraud in connection with the collapse of a credit union for the poor.

Magistrate Richard Kopf said he would recommend that Mr. King be taken to the Medical Center for Federal Prisoners at Rochester, Minn., for treatment. He ruled that the defendant understood the charges against him but would be unable to assist in his defense in what is expected to be a long and complex trial.

The 45-year-old Mr. King, who sang the National Anthem at the 1984 Republican National Convention in Dallas, is accused among other things of diverting money from the Franklin Community Federal Credit Union, which closed in November 1988.

The collapse of the credit union, from which officials said $39 million was missing, led to other avenues of inquiry, including whether money missing from the credit union was used to transport children around the country for immoral purposes. None of the investigators have declared that Mr. King personally recruited or abused young people.


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