Related Federal Cases
Avon Lake Man Indicted in $11M Credit Union Heist
AVON LAKE, OH – Gezim Selgjekaj, 41, of Avon Lake, is facing a mountain of charges – a staggering 28 counts – for his alleged role in the catastrophic collapse of the St. Paul Croatian Federal Credit Union (SPCFCU). Law enforcement officials say Selgjekaj illegally siphoned off more than $11 million, contributing directly to the credit union’s downfall and leaving thousands of honest members holding the bag.
The indictment, unsealed today, details a complex scheme involving fictitious businesses and blatant bribery. Selgjekaj is charged with one count of conspiracy, six counts of bribery, six counts of money laundering, and a whopping fifteen counts of financial institution fraud. Also caught in the net are Arthur Hoxha, 40, of Rocky River, facing one count of financial institution fraud, and Judmir Capoj, 36, of North Olmsted, charged with two counts of submitting false statements to a financial institution.
The SPCFCU wasn’t some small-time operation. At its peak in April 2010, it served 5,400 members and boasted assets exceeding $238 million. But beneath the surface, a rot was setting in. The National Credit Union Association ultimately pulled the plug, declaring SPCFCU insolvent – marking it as the largest credit-union failure in American history. “This case is yet another sad chapter in the story of the demise of an important community institution,” stated Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The credit union’s leader and his associates enriched themselves on the backs of thousands of honest and hard-working members.”
According to investigators, Selgjekaj didn’t just take the money; he built a network of shell companies to hide it. These entities – including Jimmy’s Trucking, Top Quality Produce, RGV Enterprises, and a dozen others – served as “safe havens” for the fraudulently obtained loan proceeds, despite often performing little to no legitimate business. From 2003 through 2010, Selgjekaj allegedly conspired with Anthony Raguz, the then-chief operating officer of SPCFCU, to systematically defraud the institution. He submitted false loan applications, even using nominees to bypass lending limits and avoid scrutiny.
The numbers are staggering. Between 2003 and 2004, Selgjekaj allegedly pocketed $5 million. He continued to drain the credit union of funds, receiving another $3.6 million between 2004 and 2008 – *while in federal prison for unrelated conduct*. Even after defaulting on $8.6 million in loans, he secured an additional $2.9 million between 2008 and 2010. To ensure his continued access to the funds, Selgjekaj allegedly bribed Raguz with $40,000 in cash and $66,000 in checks. Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office, put it bluntly: “The FBI will continue to seek justice for the shareholders that placed their trust and faith in the management of this lending institution.”
Selgjekaj’s actions caused a loss exceeding $11 million to the credit union. This indictment is the 24th related to criminal activity surrounding SPCFCU. Raguz himself received a 14-year prison sentence and was ordered to repay $72.5 million last year, while Koljo Nikolovski was sentenced to 18 years for his involvement. The Grimy Times will continue to follow this case as it unfolds, exposing the greed and corruption that brought down this once-thriving community institution.
Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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