A Lakewood man has been indicted for his alleged role in a $3.7 million credit union fraud scheme that authorities say involved bribes and kickbacks.
Sato Satka, 65, faces charges of conspiracy, bank fraud, and bank bribery for orchestrating the plot with Anthony Raguz, the former Chief Operating Officer of the St. Paul Croatian Federal Credit Union (SPCFCU).
The indictment alleges that Satka paid Raguz to approve loans to himself, his family members, and businesses he controlled, despite little or no repayment. The loans were reportedly used to purchase properties and finance various enterprises, including several parking lots in the Cleveland area.
From 1999 to 2004, Satka’s entities received over $4.4 million from SPCFCU with minimal payments made, leading to loan defaults that were concealed through ‘resets’ ordered by Raguz. This allowed Satka to appear as if his loans were current, according to the indictment.
In October 2003, Satka purchased a property at 1350 West 3rd Street in Cleveland for $460,000 and later sold it to Metropolitan Restaurant Systems, a company purportedly controlled by J.P., for $3 million. Satka reportedly used $90,000 in cash to induce Raguz to approve the loan, which was used to settle his obligations at SPCFCU.
The credit union, which served about 5,400 members and had assets of approximately $239 million, was placed into conservatorship by the National Credit Union Administration and liquidated in 2010 after being declared insolvent. Raguz is one of about two dozen people who have been convicted for their involvement in the credit union’s collapse.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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