Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Zai sentenced in St Paul Croatian FCU fraud
AKRON, Ohio (2/6/13)--Akron, Ohio, financier and developer A. Eddy Zai was sentenced Tuesday to seven years and three months in prison for defrauding the St. Paul Croatian FCU out of $10 million and ordered to pay the largest restitution in the history of Northeast Ohio--$23 million.

Zai was part of an extensive loan fraud ring that contributed to the collapse of the Eastlake, Ohio-based credit union in 2010.

Zai, 45, pleaded guilty in November to conspiracy, bank fraud, bank bribery, money laundering and making false statements to a financial institution (The Plain Dealer Feb. 5). Zai allegedly failed to make payments on the fraudulent loans from 2007 to 2010. Before 2007, he used fraudulent loans from other lenders to repay the credit union, prosecutors said.  His company was allegedly dependent on loans to survive.

He allegedly admitted to paying thousands of dollars in bribes to St. Paul Croatian FCU CEO Anthony Raguz in exchange for loans. Raguz is serving a 14-year prison term for accepting more than $1 million in bribes, kickbacks and gifts in exchange for issuing over 1,000 fraudulent loans involving 300 accountholders (News Now Nov. 27)

More than 24 people have been indicted for taking out fraudulent loans from the credit union. Several have received prison sentences.

The National Credit Union Administration says the credit union's conservatorship was one of the largest failures in credit union history, costing the National Credit Union Share Insurance Fund more than $170 million.


RSS





print
News Now LiveWire
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
13 hours ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
18 hours ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
18 hours ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
20 hours ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
20 hours ago