The loans went into default because little to no loan payments were made.

In order to avoid detection from both the credit union's board of directors and regulators, Anthony Raguz, the credit union's COO, and Satka used different loan accounts to disperse the fraudulent loan funds to Satka and his associates.

From these various loan accounts, checks were issued payable to Satka, the businesses he controlled and other third parties, court records show. In addition, the loans were falsely recorded as share-secured. Raguz also "reset" the loans to make it look like they were not in default.

Raguz began serving a 14-year federal prison sentence in November 2012 after he admitted to approving more than 1,000 fraudulent loans totaling $70 million to approximately 300 account holders at the cooperative for more than 10 years. He also accepted bribes totaling $1 million to approve loans.

According to federal prosecutors, Satka also recruited another individual, only identified in court records as J.P., to obtain multiple loans from SPCFCU to pay off Satka's $3.6 million in loans outstanding.

After J.P.'s loan applications were denied, Satka bribed Raguz with $90,000 in cash to approve the loans.

To conceal the bank fraud, Satka sold commercial property for $3 million to businesses controlled by J.P. Raguz then issued $3.7 million in loans to J.P.'s business. About $3.6 million was used to pay off Satka's loans, according to court documents.

J.P. made no payments on the loans, which went into default.

Federal authorities have said the collapse of SPC FCU has led to a complex, large-scale, international investigation that will continue until everyone involved is brought to justice.

So far, approximately 30 people involved in the SPCFCU collapse have been charged, convicted or sentenced.

In May 2011, about a year after the NCUA placed the credit union in conservatorship, the U.S. Justice Department and Interpol uncovered nearly $6 million in fraudulent loans that were transferred to Macedonian and Albanian bank accounts. In April 2011, a federal court ordered the Kapital Bank in Skopje, Macedonia to return $2.3 million in funds that were purportedly proceeds from credit union loans.

The NCUA said it lost $186.4 million due to the credit union's collapse.