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Defunct CDCU CEO resigns housing position in plea bargain
HARRISBURG, Pa. (11/26/07)--The former CEO of a defunct community development credit union Wednesday resigned as executive director of the Harrisburg (Pa.) Housing Authority (HHA) in a plea bargain on charges related to diverting more than $800,000 of HHA funds to bolster the credit union. Carl Payne, formerly CEO of the Greater Harrisburg Community CU, announced his resignation in a letter to Leon Feinerman, chairman of HHA's board of commissioners, according to a press release from HHA. Pending court approval, Payne was expected to plead guilty to two misdemeanor counts of making false statements to the U.S. Department of Housing and Urban Development (HUD), according to his attorney, Royce L. Morris. Payne "is essentially saying he improperly filled out financial interest statements after the fact rather than when he should have," Morris said. In return, the Office of U.S. Attorney will drop its May indictment charging Payne with providing false information to a federal grand jury investigating HHA's role in supporting the credit union. Payne has been on leave from the HHA position since the indictment was filed. In a prepared statement, Payne said he was proud of his service to HHA and the city. "I still believe the Greater Harrisburg Community CU was a laudable attempt to improve the economic situation of public housing residents and other disadvantaged citizens of Harrisburg," he added. The credit union, a $1.7 million asset credit union chartered in 2000, was declared insolvent on Feb. 3, 2006. It lost more than $264,000 during the first three quarters of 2005 due to delinquent loans. In 2004, it had a net profit of $3,737. (News Now Oct. 4 and Feb. 14))


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