3 more charged in Ohio credit union collapse


CLEVELAND (AP) -- A northeast Ohio developer has been indicted for alleging arranging nearly $17 million in fraudulent loans from a credit union that collapsed with the loss of $170 million.

The federal indictment was announced Wednesday in Cleveland against A. Eddy Zai (zeye) of Pepper Pike, his father-in-law and another businessman.

Nineteen people have been charged in the widening investigation into the collapse of the St. Paul Croatian Federal Credit Union.

Nine people have been convicted or pleaded guilty. The other cases are pending.

Zai is charged with 34 counts including conspiracy, bank fraud and money laundering.

His attorneys told The Plain Dealer (http://bit.ly/zNLkXq ) the charges are without merit and say he was a victim of the credit union's collapse. A message seeking additional comment was left Thursday for his attorney.


Information from: The Plain Dealer, http://www.cleveland.com