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 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 newspaper of Cleveland the charges are without merit and say he was a victim of the credit union’s collapse.