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.
So far investigations by the U.S. Justice Department and Interpol have found almost $6 million in fraudulent loan proceeds transferred to Macedonian and Albanian bank accounts. A federal court last month ordered the Kapital Bank in Skopje, Macedonia, to return $2.3 million of funds that were purportedly proceeds from credit union loans.
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