A Brunswick man has been convicted of 14 counts related to illegally receiving more than $3 million from the St. Paul Croatian Federal Credit Union in exchange for cash payments to the credit union’s chief operating officer, law enforcement officials said.
Svetislav Vujovic, 41, is scheduled to be sentenced on August 19.
Following a weeklong trial in U.S. District Court in Cleveland, a jury convicted Vujovic on all 14 counts – 10 counts of making false statements to a federal credit union, two counts of money laundering, and one count each of financial institution fraud and giving gifts for procuring loans.
The credit union was closed and then liquidated in 2010 after sustaining losses of approximately $170 million, making it one of the largest credit union failures in American history. Nearly 20 people have been convicted of crimes related to fraudulent lending that resulted in the credit union’s failure.
“The failure of the credit union was a tragedy for this community,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will make sure all those responsible for its failure will be held accountable.”
Vujovic obtained these loans by making false representations and promises, and he received many of those loans after having already defaulted on previous loans issued to him by the credit union. These loans were obtained in the names Cleveland Comfort Corp; SND, Inc.; Balkan Contracting; GBRS Properties, LLC; and Balkan Enterprise, Inc. The credit union lost approximately $3 million as a result of Vujovic’s fraudulent conduct.
Vujovic corruptly gave Raguz cash payments totaling approximately $20,000 to induce and reward Raguz for approving and facilitating the approval of the fraudulent loans to Vujovic, according to court documents and trial testimony.
Raguz is currently serving a 14-year federal prison sentence.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan and United States Attorney Steven M. Dettelbach following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Related Federal Cases
- Gregory L. Crabtree, Securities Fraud, Ohio 2014 · Kentucky
- Frederick C. Bryant, Mail Fraud and Tax Evasion, Ohio 2023 · Ohio
- Paul R. Tomko, Mortgage Fraud, Ohio 2009 · Virginia
- William D. Montague, Conspiracy, Fraud, Money Laundering, Bribery, Mail Fraud, Wire Fraud, Ohio 2010 · Virginia
- Jocelyn Hale, Bank and Wire Fraud, Ohio 2023 · North Carolina
Key Facts
- State: Ohio
- Category: White Collar Crime|Financial Crimes
- Source: DOJ Press Release â†â€â€
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