CDCU Figure Faces Federal Charges in CU Failure

HARRISBURG, Pa. – The executive director of the Harrisburg Housing Authority was indicted yesterday on federal charges related to the alleged diversion of as much as $500,000 in housing funds to the defunct Greater Harrisburg Community CU, which he headed. The eight felony charges against Carl Payne include an allegation that he backdated documents that were subpoenaed by a federal grand jury. Payne was president of the five-year-old credit union, which was taken over and liquidated by NCUA in February 2006. The credit union, which had $1.6 million in assets when it was shuttered, was sponsored by the HHA, as well as the city of Harrisburg and the Pennsylvania Department of Community and Economic Development. NCUA liquidated the credit union after failing to find a merger mate and deciding that it couldn’t be rescued.