CLEVELAND (1/7/13)--Three men were indicted Thursday for loan fraud related to the collapse of East Lake, Ohio-based St. Paul Croatian FCU. The new indictments bring the total number of indictments from the failure to 24.
- Gezim Selgjekaj, 41,of Avon Lake, who allegedly received more than $11 million in loans. He was charged with one count of conspiracy, six counts of bribery, six counts of money laundering and 15 counts of financial institution fraud. He allegedly received $3.6 million of fraudulent loans between 2004 and 2008 while serving a federal prison term in an unrelated case. Selgjekaj owned several business entities that allegedly were safe havens for credit union proceeds, said a press release from the Federal Bureau of Investigation's Cleveland District.
- Arthur Hoxha, 40, Rocky River, who is charged with one count of financial institution fraud (Plain Dealer Jan. 4).
- Judmir Capoj,36, of North Olmstead, charged with two counts of submitting false statements to a financial institutions (Crain'sCleveland.com Jan. 3).
They join 21 other defendants who have been indicted the past two years for the loan fraud scheme that involved $1 million in kickbacks, bribes and gifts paid to the credit union's CEO, Anthony Raguz, in return for issuing more than 1,000 fraudulent loans. About 300 accountholders were involved (News Now
Dec. 27). Several key figures in the fraud ring, including Raguz, are serving prison sentences.
The credit union collapsed in 2010, costing the National Credit Union Share Insurance Fund more than $170 million. It is considered the largest failure in credit unions' history.