ALEXANDRIA, Va.—It may be simply a formality, but NCUA has finally issued a prohibition order against Anthony Raguz, the former CEO of St. Paul Croatian FCU who was a primary player in what became the most-expensive failure ever of a natural-person credit union.
Raguz, who is already serving a 14-year sentence after pleading guilty to charges of bank fraud, money laundering and receipt of commissions or gifts for procuring loans, was ordered by NCUA to pay more than $71.5 million in restitution.
NCUA seized the credit union in April of 2010; at year-end 2009 St. Paul Croatian FCU had reported $238-million in total assets. In addition to Raguz, numerous others have also been found guilty of bilking the credit union and sentenced to prison.
Separately, NCUA issued prohibition orders against Lisa Frace, a former employee of Baker FCU in Phillipsburg, N.J., who pleaded guilty to multiple charges of theft and forgery. Frace was sentenced to six months in prison, three years of probation and ordered to pay restitution in the amount of $68,387.74. Also the subject of a prohibition order was Melissa Shurina, a former employee of USX FCU in Cranberry Township, Pennsylvania, who was admitted into an Accelerated Rehabilitative Disposition program for the charge of theft. Shurina was placed on probation for a period of six months, and ordered to complete 20 hours of community service and pay restitution.