Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Man indicted for fraud related to CUs demise
CLEVELAND, Ohio (1/7/11)--An Eastlake, Ohio, man has been indicted and charged with bank fraud and money laundering stemming from the collapse last April of St. Paul Croatian FCU, based in Eastlake. Koljo Nikolovski, 48, who has residences in Eastlake and in Skopje, Macedonia, was indicted by a federal grand jury Wednesday for fraudulently obtaining $2.5 million in loans and placing the money in a personal bank account before wiring about $2.3 million of the proceeds to a bank in Skopje (Cleveland Plain Dealer via Cleveland.com Jan. 5). The newspaper reported that the indictment said Nikolovski was not eligible for the loan because he previously defaulted on more than $1 million in loans. It alleged he paid cash bribes and kickbacks to the credit union's CEO in influence him to issue the fraudulent loans. It also said that the CEO--who has not been charged with any crime--reset the loans when they defaulted. The National Credit Union Administration (NCUA) Office of the Inspector General (IG) revealed in October that the fraudulent loans catapulted the credit union into liquidation, with losses to the National Credit Union Share Insurance Fund totaling $170 million (News Now Oct. 14). The IG report also noted that the CEO "manipulated loan records and masked the suspected loan fraud by constantly refinancing certain loans or making advance payment on those loans." St. Paul Croatian FCU was placed into conservatorship April 23 and closed May 1. At the time of its closing, it held $238.8 million in funds from 5,400 members (News Now May 4).


RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
8 hours ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
10 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
10 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
11 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
11 hours ago