Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
New indictments in St Paul Croatian FCU failure
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.

Indicted were:

  • 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.


RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
3 hours ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
5 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
5 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
5 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
7 hours ago