Koljo Nikolovski, who had been indicted for taking out millionsof dollars in fraudulent loans from the $240 million St. PaulCroatian FCU which were never repaid and led to the credit union'scollapse in 2010, pleaded guilty on Monday to 18 counts of bribery,bank fraud and money laundering.

News Update:
Feb. 8,2012: Cleveland Businessman Added to Indicted List

Of the $5.6 million in loans Nikolovski obtained, $2 million wassent to bank accounts in the Balkan republic of Macedonia,according to court filings in the Cleveland case.

Nikolovski, is scheduled to be sentenced in April and couldspend up to nine years in prison.

Earlier this month, the credit union's former CEO, AnthonyRaguz, pleaded guilty to bank fraud and agreed to testify againstNikolovski, who was scheduled to go to trial in February. Inaddition, six other people pleaded guilty to bank fraud, includingNikolovski's former wife, and agreed to testify against him.

Raguz has admitted to accepting $1 million in bribes in exchangefor approving more than 1,000 loans totaling $70 million toborrowers who had no intention of repaying funds. He agreed toforfeit the $1 million.

In addition, Raguz admitted he made the loans without requiringcollateral and knew the borrowers had few assets, no employmenthistory and often used fictitious names.

The loans were ultimately signed over to Nikolovski.

The NCUA conserved and then closed the credit union, located inthe Cleveland suburb of Eastlake, Ohio, in 2010. The failure costthe NCUSIF $170 million. At least eight other borrowers have also been charged in the case.