Gezim Selgjekaj, a 43-year-old Avon Lake man, was found guilty by a jury on 27 criminal counts, including conspiracy and money laundering, for his pivotal role in the collapse of the St. Paul Croatian Federal Credit Union (SPCFCU).
Selgjekaj, who owned multiple businesses that served as fronts for credit union proceeds, was convicted of receiving over $10 million from SPCFCU. His actions were instrumental in the credit union’s insolvency, which led to its largest credit-union failure in American history.
The SPCFCU was placed into conservatorship in 2010, with assets exceeding $238 million and serving 5,400 members. Selgjekaj conspired with Anthony Raguz, then the chief operating officer at SPCFCU, to defraud the credit union through fraudulent loan applications, according to an indictment.
Despite being imprisoned for unrelated matters between 2004 and 2008, Selgjekaj continued to receive substantial loans from SPCFCU. He was also accused of paying Raguz $40,000 in cash and five checks totaling $66,000 to influence him.
More than 20 individuals have been convicted for their involvement in the credit union’s collapse, with Raguz himself sentenced to 14 years in prison and ordered to repay over $72.5 million. The case was prosecuted by Assistant United States Attorneys Bridget M. Brennan and Robert W. Kern, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
Selgjekaj is scheduled for sentencing on May 26, marking a significant victory in the fight against financial fraud.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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