More Indictments and Lawsuits in Wake of St. Paul Croatian FCU Collapse
More than a year after St. Paul Croatian Federal Credit Union was conserved and liquidated because of losses from fraud, there have been indictments, federal and international investigations and money hunts, and a lawsuit against the NCUA.
On May 13, a federal grand jury in Cleveland indicted seven more individuals–in addition to the nine already indicted–on criminal counts related to a fraud against the credit union, which was located in Eastlake, Ohio, and at one point had assets of $240 million. The loss cost the NCUSIF $170 million.
In a related case, Skender Demiri was charged with one count of financial institution fraud, one count of bribery in connection with the business dealings of a financial institution, and one count of money laundering. He is accused of obtaining loans totaling $1.6 million by making false promises and giving Raguz $50,000 to approve and facilitate the approval of the loans.
“Federal and local investigators continue to peel away the layers of fraud and corruption that were visited upon this financial institution, “This investigation is ongoing, and will not stop until we have run down every lead,” Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said in a statement.