State senator, wife settle dispute over nonprofit payments

Democratic state Sen. Jeffrey Hayden and his wife will pay $2,750 to settle a dispute over expense reimbursements from the troubled Community Action of Minneapolis nonprofit.

The Minneapolis legislator and wife, Theresa, reached agreement last week with a court-appointed receiver to pay less than the $3,500 initially sought. Their attorney, Charles Nauen, said Thursday there is no admission of liability but they settled to save costs of potential litigation that could have fallen on them or the nonprofit being liquidated.

Community Action stopped serving its low-income clients last year after audits revealed misspending of public grant dollars. The nonprofit's chief executive was indicted on federal fraud charges. The receiver is working to recoup misspent funds.

The Hayden expenses in question involved travel to conferences. Nauen maintains the travel was legitimate.