ALEXANDRIA, Va. – NCUA has been filing suits furiously for recovery in the St. Paul Croatian FCU fraud for which the agency now estimates losses will exceed $186 million, making it the biggest credit union fraud ever.
The agency earlier projected losses of $170 million for the massive fraud that sunk the $240 million credit union, but an updated estimate by the NCUA liquidating agent for St. Paul Croatian puts the losses for the National CU Share Insurance Fund around $186.4 million.
NCUA, which is scheduled to receive $16.7 million from a Cleveland developer who pleaded guilty last week to participating in the fraud, has filed 61 separate suits against borrowers seeking recovery of $44.6 million. The agency has so far recovered $1.2 million in the case.
Anthony Raguz, the CEO of St. Paul Croatian, who approved the fraudulent loans in exchange for bribes, has pleaded guilty in the fraud, is scheduled to be sentenced Nov. 26. He is expected to receive a lenient sentence in exchange for testifying against others in the case.