A civil lawsuit filed by Erie Affiliates Inc. claims that JulieA. Spirikaitis – wife of Alex R. Spirikaitis, former president/CEOof the shuttered Taupa Lithuanian Credit Union – was “complicit in the scheme todefraud” the Ohio general contractor out of $505,985.

But Mrs. Spirikaitis, who is divorcing her husband of nearly 20years, said she was not involved in any fraud scheme, according tocourt documents. And the NCUA is seeking to have the suit dismissedon the grounds that it interferes with the agency's liquidationefforts.

AlexSpirikaitis has been charged with making false statements to acredit union for his role in the alleged embezzlement of $10million to $16 million that led to the Cleveland cooperative'scollapse. He is in federal custody.

Last week, U. S. Magistrate Judge Kenneth McHargh in Clevelandextended an indictment deadline to Jan. 19 to give Spirikaitis andhis lawyer more time to conduct pre-indictment negotiations with federal prosecutors.

Erie Affiliates Inc. of Willoughby held $505,985 in an accountat Taupa Lithuanian Credit Union. Just a few weeks after the NCUAclosed the cooperative on July 12, the company filed a lawsuit inCuyahoga County Common Pleas Court in Cleveland against Julie andAlex Spirikaitis.

The lawsuit claimed Alex Spirikaitis told Erie Affiliates thecompany's funds were placed in insured accounts. The suit chargesSpirikaitis stole the funds and that his wife “was complicit andacted in concert with Alex Spirikaitis in hiding, spending andusing (Erie Affiliates') money for her own use, pleasure andenjoyment.”

In court papers responding to the Erie Affiliates' lawsuit, Mrs.Spirikaitis denied “any complicity whatsoever in allegationsagainst Alex Spirikaitis' use or conversion of funds” of TaupaLithuanian CU.

However, federal prosecutors said they plan to charge six otherindividuals in the credit union's massive fraud case in the comingweeks or months. Former teller Michael Ruksenas pleaded guilty Dec. 2 in Cleveland's U.S.District Court to conspiring to embezzle more than $481,000 andagreed to cooperate with federal investigators.

In September, Mrs. Spirikaitis filed for divorce on the groundsof gross neglect of duty, abandonment, and incompatibility. She iscaring for their 16-year-old twin boys, one who has been severelydisabled by cerebral palsy, according to court documents.

Mrs. Spirikaitis said in court papers that the last time she hadany contact with her husband was on July 16, when police and FBIattempted to arrest Spirikaitis at his home that evening. A personat the home told police he was there but would not surrender. Forsafety reasons, law enforcement officials didn't enter the houseuntil the morning of July 17, but Spirikaitis was not there and wason the run until Oct. 21 when FBI agents captured him in Cleveland.

As a result of the Erie Affiliates lawsuit, a county judge hasgranted an order for pre-judgment attachment, which prevents thesale of a home owned by Alex and Julie Spirikaitis before a finalruling is rendered by the court. The house, located in Solon, asuburb of Cleveland, has been valued at $188,000, according tocourt documents.

Alex and Julie Spirikaitis lived in this home before they movedinto a million-dollar house in November 2012. Federal authoritiessuspect this high-end house, about a mile away from theSpirikaitis' old house, was built with funds embezzled from thecredit union because the former CEO was earning only $50,000annually, court papers show.

Last month, federal prosecutors took possession of themillion-dollar home, which has an indoor pool, entertainmentroom, a weight room, an elevator, a handicap track system, five andone-half bathrooms, and a fully equipped upstairs and downstairskitchen. The home will be sold and most of the proceeds will bedistributed to the NCUA.

The Erie Affiliates lawsuit, however, has become morecomplicated as the NCUA filed court documents in September todismiss the Erie Affiliaties' suit on the grounds that it wouldimpede the federal agency's attempts to liquidate Taupa LithuanianCU's estate.

NCUA lawyers are arguing that Erie Affliliates lacks standing tobring claims in its lawsuit because the company has administrativeremedies available under the Federal Credit Union Act and thatfederal regulations preclude the company's legal action to take theSpirikaitis' home.

“Erie's improper attempts to attach valuable assets in this case(i.e. the Spirikaitis' Sunnywood property) will substantiallyimpede and interfere with the liquidating agent's ability toadminister the liquidation estate of Taupa Lithuanian CreditUnion,” according to court documents filed by NCUA attorneys.

Erie Affiliates received an NCUA check for the insured amount of$250,000 more than two weeks after Taupa Lithuanian CU had beenclosed. The company also received a certificate of claim inliquidation” for its uninsured balance of $255,985, which wouldentitle Erie Affiliates to payouts but only if NCUA recoverssufficient obligations and money.

In early December, the Erie Affiliates lawsuit had been movedfrom Cuyahoga County Common Pleas Court to U.S. District Court inCleveland.