CLEVELAND, Ohio – Arrests continue related to the spectacular failure of St. Paul Croatian FCU, which collapsed in 2010.
The latest to be arrested is Joe Spaqi, whom prosecutors are charging with having obtained nearly $1 million in loans that were made based on “false representations and promises.” Spaqi is charged with conspiring with the credit union’s former CEO, Anthony Raguz, to get $965,423 in loans between 2005 and 2009.
According to prosecutors, Spaqi owned several businesses in the Cleveland area, including the Eclipse Bar & Grille in Cleveland's well-known Warehouse District, and used a fake name, "Luke Nue," for a joint account he held at the credit union. Some of the proceeds from the loans were used to pay North Star Title as well as a relative, according to the indictment.
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.
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