Assignment 4-4 Occupational Fraud Research Paper

Assignment 4-4 Occupational Fraud Research Paper -...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1Assignment 4-4 Research Paper Occupational Fraud Research Paper Assignment 4-4 ACCT341- E1WW Professor Filler February 11, 2012
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2Assignment 4-4 Research Paper Summary Thousands of Croatians fled Communism, war and genocide over the past century with little more than hope for a better life in Cleveland. There they found a deeply rooted community that assured them they were safe because whatever else the world might bring, Northeast Ohio Croatians could always rely on one another. (Garrett, 2011) With the collapse of the 67-year old Croatian credit union, some Croatians say they don’t know who to trust anymore. Croatians began arriving in Cleveland during the Civil War. As American Steel &Wire, Patterson –Sargent Paint Co. and other factories grew, so did the Croatian community. They opened their own Roman-Catholic Church, St. Paul, on Easter Sunday 1904 in the heart of the community, East 40 th Street and St. Clair. According to Garrett, the area was full of working- class families squeezed into rental homes because bankers refused to lend money to immigrants By the time World War 2 came around, the parishioners at St. Paul didn’t need banks anymore, they had saved up enough money to start up a credit union of their own. The church members pooled their money together to create a nonprofit financial cooperative that could make personal loans and offer other banking services to members and in 1943 the St. Paul Croatian Credit Union was born. As the Croatian community spread, the Credit Union maintained its office in the old neighborhood in Cleveland but also opened a branch inside the American-Croatian Lodge in Eastlake, Ohio. There Tony Raguz oversaw operations as the Chief Executive Officer. “Everyone trusted Tony.” According to Garrett, He was a smart guy, and he came from a large and respected Croatian family, some of whom sat on the boards of both the credit union and the
Background image of page 2
3Assignment 4-4 Research Paper Eastlake Lodge. “If you worked at a machine shop and wanted to buy a $100,000 piece of machinery to launch your own shop in your garage, Tony could make that happen”, said John Didovic, who manages Dubrovnik Garden restaurant and party center inside the lodge. “If your car broke, and you were short on cash, Tony could find a way to float you through”. “And if you were a new Croatian in Greater Cleveland, someone always steered you to Tony, who could look past a short credit history and get you a Visa credit card embossed with a Croatian flag.” (Garrett, 2011). Raguz admitted dispensing millions of dollars worth of loans without requiring any collateral. Raguz knew the borrowers had little or no assets, no employment history, and often provided fictitious names, U.S. Attorney Steven Dettelbach said, reading from a plea agreement signed by Raguz. Most of the borrowers made little or no repayments, Dettelbach said. To cover his trail of delinquent loans, Raguz and others issued new loans -- known as reset loans -- in the names of
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/29/2012 for the course ACCOUNTING 341 taught by Professor Kamradt during the Spring '10 term at Franklin.

Page1 / 9

Assignment 4-4 Occupational Fraud Research Paper -...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online