Rumor & Innuendo Are Wrong

by Frederick A. Hurst

Black Springfield is abuzz with rumors about high-profile Black people who have recently become associated with federal inquiries, including Carol Aranjo, Cornell Lewis and Frank Ware, all of whom have been publicly identified in news stories.   

CAROL ARANJO

Federal regulators, who have taken over the D. Edward Wells Federal Credit Union, have made several substantial and very public allegations of mismanagement and potential fraud against the former management of the credit union.  Carol Aranjo, the credit union’s former executive director, has countered with claims of bias, unfair treatment and suggestions of evidence manipulation against federal regulators.  Both sides have had an initial opportunity to air their positions before the fair and firm Judge Michael Ponsor in Springfield Federal District Court, where the credit union’s former management brought a lawsuit for injunctive relief, first to prevent the takeover, and then to reverse it. 

Judge Ponsor’s comments at the hearing suggest that Aranjo and former Wells’ management have a high legal barrier to overcome.  They will probably have to show that irreversible harm will befall them if the takeover is not reversed and a likelihood that they will win if the case goes to trial.  All of this must be accomplished in the dubious context of asking a Federal District Court Judge to permanently overturn the rulings of a Federal Regulatory Agency, rulings that are presumably based upon the Agency’s factual findings of regulatory violations. 

The most immediate of these alleged violations is the regulators’ finding that the credit union refused to open its records for examination, something that is required of all federal credit unions and banks.  Whether or not this allegation is true, and if true, how long the refusal lasted, and whether or not the takeover is the appropriate penalty for refusal are questions for the court to decide.  To its credit, before the takeover, Wells’ management filed the federal lawsuit that will decide those questions. The takeover took place after the lawsuit was filed and before it could be decided, raising the question of whether or not the takeover was an act of federal retaliation.

After taking over the credit union, the regulators found several irregularities that they claim also might justify its takeover.  Carol Aranjo suggested in a Union News article that these after-the-fact findings might be federal fabrications designed to support an unfair takeover.  But they are powerful allegations involving one million dollar overdrafts of checking accounts, including $70,000.00 attributed to Carol Aranjo, a 1.5 million dollar unrecorded loan to Friends of the Credit Union and administrative recording errors involving individual accounts.  Judge Ponsor will eventually separate fact from fiction.

CORNELL LEWIS

Cornell Lewis was indicted by a federal grand jury for one count of conspiracy to defraud the United States and two counts of theft from an organization receiving federal funds.  Lewis’ indictment stemmed from his actions as treasurer of the board of the Greater Springfield Enterprise Fund.  The difference between the smaller amount of money related to his indictment and the much larger amount of money involved in the indictments of his White co-conspirators suggests that Lewis may have been only marginally involved and gives credence to the rumor that he was used by others and did not knowingly misuse funds or participate in a conspiracy to do so.  He has a reputation for honesty and it would surprise few who know him if he were ultimately acquitted.

FRANK WARE

Black developer Frank Ware has received public attention for his private development and nonprofit involvement with the Springfield Housing Authority, whose director and others are under federal investigation for potentially criminal acts.  Contrary to rumors that he is somehow connected to the criminal investigation of the Springfield Housing Authority management, no evidence has surfaced for that conclusion and there is no current justification for it.  One conclusion to draw about Frank Ware is that he is one of the hardest working guys you will ever meet, as evidenced by his clever and effective incursion into the nonprofit arena, while never missing a step in his private development work.  That may explain envy and jealousy toward him but it does not justify assassination of his character.  We should remember that this is America where a person is free to disagree with and use the courts to sue their own government without fear of reprisal.  It is a country where a person is innocent until proven guilty and where a person has an equal right to compete for income and wealth.  It is also a country where fundamental fairness is weaved into the core of our culture through our constitution and institutions and where properly proven facts govern. 

Accordingly, we should let the court decide if the credit union should be restored to its original management and whether Cornell Lewis is innocent or guilty and leave Frank Ware and others who have not been accused of any illegality alone to live their lives free of vicious rumor and innuendo that stain reputations without regard for due process.