CLEVELAND, Ohio – The former CEO of the defunct St. Paul Croatian FCU testified during a court proceeding here that he is completely to blame for the collapse of St. Paul Croatian FCU, the most costly failure ever for the National Credit Union Share Insurance Fund.
Anthony Raguz is testifying this week as part of the trial of Gezim “Jimmy” Selgjekaj, who has been charged with paying bribes in exchange for obtaining fraudulent loans at the credit union. Among those taking the bribes: Raguz, who is currently serving a 14-year prison term for his role in the failure of St. Paul Croatian. Selgjekaj is charged with receiving $10.5 million in the bogus loans.
According to Cleveland.com, when Raguz was asked who was most responsible for the fraudulent loans, the former CEO responded, “It was me, with the help of others.
Authorities have alleged that Selgjekaj, 43 paid Raguz more than $100,000 in bribes between 2003 and 2010. Cleveland.com reported that Selgjekaj faces 28 federal charges and has rejected multiple plea deals, though prosecutors were able to get two of his business partners, Arthur Hoxha and Judmir Capoj, to take deals and testify against him.
Raguz's own testimony is also part of his plea deal in a separate case. During questioning Raguz explained his role in the scheme and how the fraud was concealed, saying he directed the staff of the credit union to move money in and out of accounts and to show that loans were paid.
"Whatever I asked them to do, they did," Raguz said, according to Cleveland.com.
Selgjekjaj’s attorneys told the court that the fault does not lie with their client, but with Raguz.
St. Paul Croatian was placed into conservatorship and liquidated by NCUA in 2010, with an estimated loss to the NCUSIF of $170-million. Nearly two-dozen people have been charged and convicted in cases related to the credit union.