News and Press Releases

Illinois man sentenced to two years for role in credit union collapse

FOR IMMEDIATE RELEASE
January 29, 2013

An Illinois man who played a role in one of the largest credit union collapses in American history was sentenced to two years in prison, United States Attorney Steven M. Dettelbach said.

Bujar Sejdic, 33, Ottawa, Illinois, was also ordered to repay $1.6 million in restitution by U.S. District Judge Christopher Boyko.

Sejdic pleaded guilty last year to financial institution fraud, giving gifts for procuring loans and three counts of money laundering related to his activities at St. Paul Croatian Federal Credit Union, located in Eastlake, Ohio.

The credit union closed in 2010, costing the National Credit Union Share Insurance Fund more than $170 million.

Between January 2004 through March 2010, Sejdic obtained 25 loans totalling more than $1.6 million from SPCFCU. These loans were made fraudulently, under false and fraudulent pretenses,  and many were made after Sejdic had already defaulted on previous loans, according to court documents.

He obtained these loans with the assistance of the credit union’s then-chief operating officer, Anthony Raguz. In return, Sejdic gave Raguz $40,000 in cash and one check, according to court documents.
Raguz is currently serving a 14-year prison sentence for his crimes related to the credit union’s collapse.
In 2009 and 2010, Sejdic wired $240,000 from his SPCFCU account to an account in Belgrade, Serbia, according to court documents.

As a result of Sejdic’s actions, SPCFCU and the National Credit Union Association lost more than $1.6 million, according to court documents.

This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Eastlake Police Department.

 

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