The controversies involving the liquidated St. Paul Croatian Federal Credit Union continue, with a 32-count complaint filed May 21 in U.S. District Court in Cleveland by the NCUA.
The regulator, acting as liquidator, is seeking to recover more than $18.9 million in fraudulent loans and damages from prominent Cleveland businessman A. Eddy Zai, Zai's wife, Tina, and her father, Ted M. Vannelli. The family is alleged to be the largest recipient of fraudulent loans from the credit union, which was seized by the NCUA in May 2010 and cost the NCUSIF $170 million.
According to court documents, the Zais and nine business enterprises they owned, received several share-secured loans from the credit union from June 9, 2009 until the liquidation date. However, deposit accounts "failed to maintain sufficient funds … to properly collateralize the loans." according to the NCUA's compliant.
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