Bujar Sejdic, Financial Institution Fraud, IL, 2023

Illinois man Bujar Sejdic, 33, of Ottawa, has been sentenced to two years in prison and ordered to repay $1.6 million for his pivotal role in the collapse of the St. Paul Croatian Federal Credit Union (SPCFCU), a case that remains one of America’s largest credit union failures.

Sejdic pleaded guilty to financial institution fraud, giving gifts for procuring loans, and three counts of money laundering. The U.S. District Judge Christopher Boyko handed down the sentence, in addition to the restitution order.

The credit union’s closure in 2010 cost the National Credit Union Share Insurance Fund over $170 million. Sejdic obtained more than $1.6 million through 25 fraudulent loans between January 2004 and March 2010, often after defaulting on previous loans. His accomplice was SPCFCU’s then-chief operating officer, Anthony Raguz.

Sejdic paid Raguz $40,000 in cash and one check for assistance. Raguz is currently serving a 14-year sentence for his involvement in the collapse. Additionally, Sejdic transferred $240,000 to an account in Belgrade, Serbia, from his SPCFCU account.

This conviction follows a thorough investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service’s Criminal Investigation Division, with support from the Eastlake Police Department. Assistant U.S. Attorney Bridget M. Brennan prosecuted the case.