A Brunswick, Ohio man was sentenced Monday to more than nine years in federal prison for embezzling nearly $3 million from the St. Paul Croatian Federal Credit Union, which was liquidated by the NCUA in 2010 after sustaining losses of more than $170 million.
Svetislav Vujovic, 42, was found guilty earlier this year for fraud, money laundering, making false statement to a federal credit union and giving gifts in exchange of loans.
In addition to the 109-month prison sentence, Vujovic was ordered to pay restitution of $2.95 million by U.S. District Judge Christopher Boyko in Cleveland.
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Nearly 20 people have been convicted of crimes related to the massive fraudulent loan scheme that resulted in one of the largest credit union failures in U.S. history, according to federal prosecutors.
Through the assistance of Anthony Raguz, the former president/CEO of the Eastlake, Ohio-based St. Paul Croatian FCU, Vujovic received numerous fraudulent loans totaling nearly $3 million from 2004 to 2008, according to court documents and trial testimony.
Vujovic obtained these loans by making false representations and promises He also received many of those loans after he defaulted on previous loans issued to him by the credit union. These loans were obtained in the names several businesses, according to court papers.
Vujovic gave Raguz cash payments of $20,000 in exchange for approving the fraudulent loans, federal prosecutors said.
Raguz is currently serving a 14-year federal prison sentence after he admitted to approving more than 1,000 fraudulent loans totaling $70 million to over 300 account holders at the cooperative from 2000 to 2010. He also accepted bribes totaling $1 million to approve loans.
The NCUA said it lost $186.4 million in the collapse and sued Vujovic for $6.9 million.
Stephen D. Anthony, special agent in charge of the FBI's Cleveland field office, said the collapse of St Paul Croatian FCU led to a complex, large-scale, international investigation that will continue until all those involved are brought to justice.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
