A man accused of diverting $34 million from a credit union created for low-income people lived in affluence with chartered jets, limousines and a $5,000-a-month rented house, published reports said.
Lawrence E. King Jr., 44, chief executive of the failed Franklin Federal Credit Union in Omaha, was ordered by a federal judge last week to turn over most of his property to a court-appointed receiver while a $34 million lawsuit against King is pending in U.S. District Court.The National Credit Union Administration filed the lawsuit, accusing King of diverting funds from Franklin for personal and business use through a "long series of fraudulent, dishonest and illegal acts."
The lawsuit said King kept secret a second set of financial records to hide the existence of about $34 million in certificates of deposit.
King allegedly used the money to pay for chartered jets, jewelry, clothing, flowers and other expenses unrelated to the credit union, the lawsuit said.
U.S. District Judge William Cambridge empowered lawyer Keith I. Frederick to take possession of King's stocks, bonds, bank deposits, jewelry and all real estate - except his catering business and his home overlooking the Missouri River.
Frederick was empowered to reclaim furniture and other belongings that King sold or removed recently from his rented home in Washington. He also was instructed to take possession of King's jewelry, including a gold watch valued at $65,000, a $9,000 gold ring and a set of black pearl cuff links, tie tac and shirt studs valued at $1,000.
King's attorney, William E. Morrow Jr., said the receivership issue hinders resolution of the lawsuit.
"I don't think there is very much property for the receiver to get his hands on," Morrow said.
King was an active Republican, working with the party's Citizens for America and the National Black Republican Council and singing the national anthem at the 1984 GOP convention in Dallas.