The NCUA has filed suit in federal court seeking $2.2 million from two former St. Paul Croatian FCU members it alleged haven’t repaid loans it received fraudulently from the now-defunct credit union in suburban Cleveland.
The agency, in a suit filed in U.S. Bankruptcy Court in Akron, Ohio, is seeking the money from Sinisa Baros and Simona Baros of Medina, Ohio, who were among the members of the now-defunct credit union who received loans authorized by the former CEO Anthony Raguz.
Last month, Raguz, whose actions helped trigger one of the largest credit union failures in history, pleaded guilty to six counts, including bank fraud, money laundering and bank bribery in federal court in Cleveland. He is in in prison now and is scheduled to be sentenced in January.
The NCUA’s lawsuit alleged that Sinisa Baros received loans, some of which he refinanced, but never disclosed that his income declined because he lost his job. The agency alleges that Raguz and Sinisa Baros shifted some of the loans to the account of his wife, Simona Baros.
The Baroses filed for Chapter 7 bankruptcy in March.
Last year, the NCUA conserved and then closed the $240 million credit union, located in the Cleveland suburb of Eastlake, Ohio. The failure cost the NCUSIF $170 million.
Raguz is one of 16 people hit with criminal charges in the credit union failure.