6:15 PM, Sep 27, 2011

http://www.wkyc.com/news/article/208664/3/Mentor-man-pleads-guilty-to-money-laundering-other-counts

CLEVELAND -- Federal officials say Anthony Raguz, 52, of Mentor, pleaded guilty to six counts in federal court, including bank fraud, money laundering and bank bribery, for his role in one of the largest credit union failures in American history.

Raguz is the former Chief Operating Officer of the St. Paul Croatian Federal Credit Union in Eastlake.

Federal officials say Raguz issued more than 1,000 fraudulent loans, totaling more than $70 million, to over 300 account holders at St. Paul from 2000 to April 2010, according to court documents.

Court documents also show he accepted more than $1 million worth of bribes, kickbacks and gifts in exchange for the fraudulent loans.

He is one of 16 people who have been charged in U.S. District Court for their roles in the credit union collapse.

Raguz is scheduled to be sentenced January 4.

St. Paul Croatian Federal Credit Union in Eastlake, Ohio, went into conservatorship and then forced liquidation in April 2010. That resulted in a $170 million loss to the National Credit Union Share Insurance Fund.

"People ought to know that senior bank officials are being held accountable," said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Raguz oversaw the issuing of loans to hundreds of account holders with little or no assets, income or employment history, according to court documents. He also oversaw scores of "loan resets" in which older loans were fraudulently repaid with new loans in the names of false nominees, including "Auto Truck Company" and "B.S. Construction," according to court documents.

The money laundering counts stem from Raguz issuing checks totaling $371,800 drawn on his St. Paul account payable to The Vanguard Group, according to court documents.