Related Federal Cases
- Ohio Docs Accused of Risky Cancer Drug Import Scheme · Ohio
- FDIC OKs Erebor Bank Deposit Insurance in Ohio · Ohio
- Georgia’s Crabtree & Donnan Hit with 85-Count Ponzi Scheme Indictment · Georgia
- Ohio Man Sentenced for Heroin Distribution in W.Va. · West Virginia
- Ohio Woman Sentenced for Drug Smuggling into U.S. · Ohio
Ohio Man Indicted for $11M Bribery Scheme
A 41-year-old Avon Lake man has been charged with 28 criminal counts for illegally receiving over $11 million from the St. Paul Croatian Federal Credit Union, actions which played a role in the credit union’s collapse, law enforcement officials said.
Gezim Selgjekaj, 41, was charged with one count of conspiracy, six counts of bribery, six counts of money laundering and 15 counts of financial institution fraud.
Also charged were Arthur Hoxha, 40, of Rocky River (one count of financial institution fraud) and Judmir Capoj, 36, of North Olmsted (two counts of submitting false statements to a financial institution).
The St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it 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," said 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 the indictment, Selgjekaj owned, operated and controlled, in whole or in part, several business entities, which were created either primarily as "safe havens" for credit union proceeds or that performed little or no legitimate business despite receiving loan proceeds intended for Selgjekaj’s "business" ventures.
Those business included: Jimmy’s Trucking; Top Quality Produce; RGV Enterprises; Alba Logistics; GPA Transport; J&F Properties; Lake County Farmers Market; Albkos Properties LLC; G&M Truck Repairs; Produce, Inc.; Fresh Fruit; Fresh Start Co.; East Side Farmers Market; RGA Enterprises, LLC and Ristorante Luciano, according to the indictment.
From 2003 through April 2010, Selgjekaj conspired with Anthony Raguz, who at the time was chief operating officer at SPCFCU, and others, to defraud the credit union, according to the indictment.
Selgjekaj submitted false and fraudulent loan applications to Raguz, including submitting loan requests in nominee’s names when Selgjekaj’s aggregate loan balances reached a level that could have drawn attention from auditors or members of the credit union’s board, according to the indictment.
To influence and reward Raguz for providing him with the fraudulently obtained money from SPCFCU, Selgjekaj gave Raguz $40,000 in cash and five checks totaling $66,000, according to the indictment.
Overall, Selgjekaj’s conduct resulted in a loss to the credit union of more than $11 million, according to the indictment.
To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.
RELATED: Detroit Man Jailed
RELATED: Dog Breeder Charged
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
