Bujar Sejdic of Ottawa, Ill., will spend the next two years in federal prison for fraud involving $1.6 million of the $70 million St. Paul Croatian Federal Credit Union fraud case in Cleveland.

Sejdic was also ordered to pay $1.6 million in restitution to NCUA by Judge Christopher A. Boyko in U.S. District Court in Cleveland on Tuesday. Sejdic pleaded guilty in October to financial fraud, kickbacks and money laundering.

An indictment showed Sejdic gave former SPCFCU CEO Anthony Raguz $40,000 to reward him for providing the fraudulent loans from the Eastlake, Ohio, credit union that collapsed in April 2010. Federal prosecutors also charged that Sejdic illegally transferred $240,000 from SPCFCU accounts to a bank in Belgrade, Serbia.

Raguz was sentenced to 14 years in federal prison in November for his central role that led to one of the largest fraud cases in U.S. credit union history.

The former CEO admitted to approving more than 1,000 fraudulent loans totaling $70 million to over 300 account holders at the credit union from 2000 to 2010. He also accepted bribes totaling $1 million to approve loans, according to court documents.

According to The Times newspaper in Ottawa, Sejdic is the owner of the Sunfield Restaurant, which opened July 2010. At the time, he told the newspaper he operated another restaurant in Rockford, Ill.

Sejdic is expected to serve his prison term at the federal prison in Pekin, Ill., according to court records.

Instant Insights /

Illinois Restaurateur Gets Prison Stay in St. Paul Croatian FCU Case

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