CLEVELAND, Ohio–The string of convictions and sentencings related to the 2010 failure of St. Paul Croatian FCU continues.
The latest to be sent to prison is Gezim Selgjekaj of Avon Lake, Ohio, who has been sentenced to 25 years in jail by U.S. District Judge Christopher Boyko for charges that included fraudulently obtaining more than $10.6 million in loans, bribing the former CEO of the credit union, Anthony Raguz, with more than $100,000 to make those loans, and laundering the proceeds.
In 2011, Raguz pleaded guilty to charges of bank fraud, bribery and money laundering after he was charged with stealing more than $70 million from the credit union.
The failure of St. Paul Croatian is the biggest ever failure for the National Credit Union Share Insurance Fund at $170 million. More than two-dozen people have been charged and/or jailed as a result of crimes related to SPCFCU. The former CEO, Raguz, is currently serving a 14-year sentence and has been ordered to pay $72 million in restitution.