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Lithuanian Journal
The End of Taupa
November 1, 2013 Edward Staskus	1 Comment
By Ed Staskus
When one-time CEO Alex Spirikaitis was arrested on the afternoon of Monday, October 21, 2013, he had been on the run for ninety-some days, accused of embezzling more than $10 million from the Taupa Lithuanian-American Credit Union in Cleveland, Ohio.
It was almost half of the cash, assets, and member deposits of the small non-profit bank.
He had changed his appearance by growing hair on his formerly shaved head and shaving his goatee. Despite speculation that he had fled to Europe or South America, he was apprehended in the Collinwood neighborhood on Cleveland's east side.
"He was actually walking down the street when we spotted him," said FBI Special Agent Vicki Anderson. His disguise had only gotten him so far. Although he had left behind multiple semi-automatic weapons and 10,000 rounds of ammunition secreted away at the credit union, he was arrested without incident.
"He did not put up a fight."
Stealing money with a smile and a fountain pen is one thing. Shooting it out with the Federal Bureau of Investigation is another thing. They aren't the same thing, by a long shot.
The FBI would not reveal how he been tracked to Collinwood, only that they had "developed information based upon advanced investigative techniques that led to his apprehension," a brief statement said.
He was less than three miles from closed down boarded up Taupa Credit Union.
Modern credit unions date to mid-nineteenth century Germany, where they were conceived as people's banks leveraging social capital to serve farmers and the working class. The first credit union in North America began operations in 1901 with a ten-cent deposit. Today more than 8000 of them in the United States serve over 90 million members with total assets of nearly $800 billion.
Managed by their members, most credit unions are not-for profit cooperatives taking in deposits, promoting thrift, and making loans. Unlike banks, individuals combine to manage and control their own money. They are near and far in many shapes and sizes. Credit unions range from corporate entities to community institutions serving local schools and churches.
When Augis Dicevicius emigrated from the homeland to Cleveland in the early 2000s, he soon opened an account at Taupa. It was in the neighborhood, the employees at the credit union were from the immigrant community, spoke Lithuanian, and over time became more like friends than bankers.
"It was like loyalty," he said, describing why he kept an account there.
"There is a level of trust from both sides of the counter at Taupa because you know who you are dealing with," said Algis Gudenas, former chairman of the credit union's board of directors, three years before the National Credit Union Association liquidated it. "I think the slogan of Taupa more or less says it all, save with one of your own."
From the 1930s on when the federal government began to charter them, credit unions grew steadily, especially among immigrant groups. They were instrumental in helping establish Poles, Germans, Italians, and the more recent Asian and Hispanic immigrants in their new locales. When creating the Office of Ethnic Affairs in 1976 President Ford cited "the ethnic church, school, and credit union" as fostering "a sense of neighborhood."
Wherever Lithuanians have settled in the United States, from coast to coast, they have formed their own credit unions. Founded in 1969, the California Lithuanian Credit Union has assets of $72 million. The thriving Boston Lithuanian Federal Credit Union celebrated its 33rd anniversary in 2013. From its roots in the basement of a church hall in the early 1950s, Toronto's Parama has grown to become the world's largest Lithuanian credit unions.
Already by 1906 in Cleveland the Lithuanian Building and Loan Association, sometimes simply known as the Lit bank, had been established, even though the community numbered less than a thousand at the time. After World War Two it evolved into the Superior Savings and Loan. In the 1980s, when Cleveland was by then home to more than sixteen thousand former Lithuanian natives and their children, Taupa was founded.
It served the community for almost three decades.
With approximately 1100 members and $24 million in assets, located a short walk from both their church and the Lithuanian Village cultural center, Taupa was a stable institution, healthy and growing, year after year, even in an economy often troubled by bank failures and recessions.
At least it was until the evening of July 16, 2013, when police and federal agents surrounded Alex Spirikaitis's $1.7 million home in Solon, a bedroom suburb 25 miles southeast of Cleveland. It was four days after the decision had been made by the state to liquidate the credit union, determining it was insolvent and had no viable prospect for restoring operations.
Armed with a warrant for his arrest for fraud, when authorities approached the home they were met by his family, who told them he was inside, but was refusing to come out. He was going to tough it out.
"Family members left the house with us and we thought, from the information we gathered, that he was not going to willingly come out," said Special Agent Vicki Anderson.
The police decided to regroup, the size and layout of the large house playing a big part in their decision to wait for daylight. After a night-long standoff, the neighborhood cordoned off for safety's sake, and TV news crews at the ready, tactical teams entered the house in the morning.
But the police came up empty. He was not there. He had run away, fled from the consequences, not that it did much good. "A horse may run quickly but it cannot escape its tail," is how a Lithuanian proverb puts it.
Before the first members made their first deposits in 1984, the credit union was just a hope and a dream.
"We were in our kitchen having coffee one morning, talking about it like we had for months," recalled Angele Staskus. "That was when my husband suddenly said yes, we were going to go ahead."
Believing Cleveland's Lithuanian immigrants and descendants would be better off banding together for their savings and loan needs, Vic Staskus took his brainchild to an ad hoc committee made up of Vytautas Maurutis, Vacys Steponis, Gintaras Taoras, and Vincas Urbaitis. Taupa was coined as the bank's name and they were shortly chartered by the state.
At a meeting at Our Lady of Perpetual Help church attended by fewer than twenty people, they collected $4000.00 in deposits, convinced local Lithuanian attorney Algis Sirvaitis to donate space for an office, and hired Rimute Nasvitiene, who became Taupa's first employee.
"At first we did everything by hand," said Vic Staskus. Later that year the Toronto credit union offered them their old computing machine. "It took four of us to bring it into our office, since it was as big as a table, and on top of that we lost most of our small office space to it." Fortunately, through a friend at IBM, they were shortly able to secure a more modern system.
After they purchased their own building from a retiring Lithuanian doctor in 1985, deposits began to pour in. "That was a problem," Vic Staskus recalled shortly before his death in January 2011. "We had no loans, so we were earning very little. We asked one of our board members to take out a loan. But he said he didn't need anything. Every time we asked him, he said no. We were finally able to convince him and he took a loan out for $500, and gradually people began to realize we were lending."
By 1990, when Vic Staskus left Taupa, the credit union had nearly $8 million in assets and delivered most of the same services all banks did. "I knew we could offer better rates and interest, and I always believed we could offer as many advantages as banks to our members," he said. Taupe was on solid footing and growing.
Alex Spirikaitis joined Taupa in the early 1990s, at first working at the front counter as a clerk, later promoted to assistant manager, and eventually taking on the role of CEO, as the credit union quadrupled its assets in those years.
"He lived on the same street as we did, in the neighborhood, just down the street from the credit union, when we were children," said Rita Zvirblis, who served as secretary for Taupa's board of directors in its early years. "He was a really nice kid, really quiet."
Former board director Ricardas Sirvinskas described the new CEO as well liked, especially by older members, because he spoke Lithuanian fluently. "The older generation of Lithuanians, they really liked Alex very much."
After he was arrested, U.S. Magistrate Judge Kenneth McHargh unsealed an affidavit revealing the extent of the embezzlement, which was more than $10 million, making it one of the largest cases of fraud against a credit union ever n the country. The largest, involving the St. Paul Croatian Credit Union, was coincidentally also in Cleveland, Ohio.
The criminal complaint against Alex Spirikaitis was for allegedly making false statements to a credit union from 2011 through 2013.
"He printed out numbers he wanted to report to auditors and the National Credit Union Association and taped them over the real numbers from the true Corporate One Federal Credit Union bank account statements," the affidavit states. "Mr. Spirikaitis then photocopied the altered documents resulting in a document that mimicked the appearance of a statement coming directly from Corporate One."
The machinations were on the order of "Get Smart."
"Everybody accepted the financial statements Alex provided us, and everybody appeared to be happy with them," said Vincas Urbaitis, a founding member of the credit union who sat on its board for more than 25 years until resigning in 2011.
"I guess everybody just got duped."
During the summer, as Alex Spirikaitis remained on the loose, federal prosecutors seized his wife's luxury SUVs and moved to take legal possession of his home. Court documents revealed that the down payment for the house, the construction of which took a year, was paid with two checks totaling $100,000 from the former CEO's personal account at the credit union.
"All remaining checks, totaling approximately $1,555,132, came from Mr. Spirikaitis in the form of Taupa Lithuanian Credit Union official checks," court documents said. "While working at the Taupa Lithuanian Credit Union, Mr. Spirikaitis never made in excess of $50,000."
The luxury Adirondack-style house on a five-acre lot featured two full kitchens, an indoor swimming pool, entertainment room with big screen and movie projectors, five-and-a-half bathrooms, and an elevator.
Alex and his wife had a luxury suite at FirstEnergy Stadium for Cleveland Browns football games. They drove one of their nine cars downtown for home games. They celebrated touchdowns with fancy drinks.
"No Trespassing" signs surrounded the house on all sides.
"I don't think anybody from the board of directors knew or anyone within the Lithuanian community knew he was building a house," said Vincas Urbaitis. "He was not very social. But he was not antisocial, either. He would talk to you about the business aspects of the credit union, but I don't even know who his close friends were."
He was a kind of chameleon. Everybody noticed him, but nobody recognized him. He wasn't a public man, after all. Ricardas Sirvinskas described Alex Spirikaitis as a quiet person, keeping to himself, and only rarely attending social events in the Lithuanian community.
Although court documents were not completely clear regarding the final tally of money missing, Vincas Urbaitis was bewildered why examiners had not verified the statements prepared by Alex Spirikaitis.
"They never went to the bank, Corporate One, and asked independently as to how much money was in the accounts," he said.
Vytautas Kliorys, board president of Taupa at the time it was closed and liquidated, also questioned the credit union's third-party audit firm and examiners. "The board believed that it had all the procedures in place to prevent this sort of event," he said. "We had received excellent and very good reports from the annual state exams, and we had even gone one step further than required and used an outside CPA firm to perform annual independent audits."
Paul Hixon, VP of marketing at Corporate One, had no comment other than to say the National Credit Union Association was investigating. Officials said it would take up to six months to complete a full forensic account process.
The Lithuanian community reacted to the credit union's closing with dismay. "For those in Cleveland that have been watching the news for the last few days know that the Lithuanian community in Cleveland has been in the spotlight," said Regina Motiejunas-McCarthy, co-host of Siaurinis Krantas Lithuanian Radio.
"Not because of something good but because of a tragedy."
The unexpected closure of the credit union affected all of its members, freezing their accounts for several months-and-more, even though they were insured, as well as severely impacting some businesses, including the Lithuanian Community Center.
"Like many other businesses that have their accounts there, we are all scrambling to open new checking accounts with basically no liquid cash other than from sales over the weekend," Ruta Degutis, president of the community center, said when news of the closure became official.
"Alex assumed a public trust when he became CEO of Taupa, to help better the lives of others," said one of the members. "It was not given to him as an opportunity to satisfy personal greed." After thirty years Cleveland's Lithuanian community lost one of the pillars of its community.
Within days of his arrest U.S. Magistrate Kenneth McHargh found the former bank officer indigent and qualified for a court-appointed public defender. Since a "Go Bag" filled with blank identification cards, mobile phone cards, and stored value cards that could be used in lieu of cash had been found in his office, the magistrate also ruled he be held behind bars without bond. Assistant federal public defender Darin Thompson did not challenge the no-bond ruling.
The defendant and his lawyer agreed to waive his right to a detention hearing. The case was bound over to a federal grand jury. Alex Spirikaitis left the U.S. District Court in downtown Cleveland as he had entered it, hands handcuffed behind him, a policeman beside him guiding him away.
In the same courtroom the following year Alex Spirikaitis and Vytas Apanavicious pled guilty to bank fraud. Vytas Apanavicius of VPA Accounting, providing bookkeeping and accounting services, conspired with the group, depositing and transferring funds to hide overdrafts and withdrawals, according to Steven Dettlebach, United State Attorney. Michael Ruksenas of Naples, Florida, and John Struna of Concord Township, Ohio, were subsequently charged for their roles in the conspiracy.
At the end of the day, Alex Spirikaitis was sentenced to eleven years in prison, not so much a punishment as a consequence, the wages not of sin but of breaking the faith.
A version of this story appeared in Draugas News.
Ed Staskus posts feature stories on Red Island http://www.redislandpei.com Paperback Yoga http://www.paperbackyoga.com 147 Stanley Street http://www.147stanleystreet.com and Lithuanian Journal http://www.lithuanianjournal.com. To get the site's monthly feature in your in-box click on "Follow."
147 Stanley StreetAlex SpirikaitisAlgis GudenasAngele StaskusEd StaskusGintaras TaorasLithuanian Community CenterRegina MotiejunasRimute NasvytisRita ZvirblisRuta DegutisTaupa Credit UnionVacys SteponisVicki Anderson FBIVincas Urbitis Vytautas KliorysVytautas MaurutisVytautas Staskus
August 10, 2013 Edward Staskus	Leave a comment
"Rhythm is something you either have or don't have, but when you have it, you have it all over." Elvis Presley.
On a Saturday morning in mid-fall, Olga Capas, Rita Zvirblis, and Vanessa Staskus ordered late breakfasts and early lunches at the Diner on Clifton, after finding a table on the patio and easing into their seats, twenty minutes after their ever first Zumba class. Over cups of steaming coffee, three-cheese omelets, patty melts, and shared sweet potato fries, they caught up with their breath and with tuning in to the sunny-side up movement exercise scene.
"We got there early and found our space in the back," said Vanessa, "but then every other minute somebody went behind us, so in no time we went from being the back row to being the front row."
If you're in the front row you're leading the parade. It wasn't what they had planned, but once the class started, they had to keep moving. If you stop, you're going to melt back into the tuba section.
"I thought they were going to kick me out," said Rita, "I have no rhythm, but it's so fast, you can't think about anything."
"I loved it, the music and moving," said Olga.
The three women are all of Lithuanian descent, one of them from the motherland, two of them immigrant stock, living on the west side of the Cuyahoga River, on the west side of Cleveland, Ohio, active and fit enough, but never trim and fit enough. Plump pale and healthy as an ox without batting an eyelash was the touchstone once upon a time, but the signs of the times have long since changed.
Zumba is a dance and fitness program created by exercise instructor and choreographer Alberto 'Beto' Perez in Colombia during the 1990s when he improvised salsa music into an aerobics class. Since 1999 it has expanded to 125 countries, taught by more than 20,000 certified instructors. Practiced weekly by approximately 14 million people worldwide it is today's most popular dance fitness phenomenon.
In 2012 Zumba was named the 'Company of the Year' by Inc. Magazine and is today one of the largest fitness brands in the world, practiced everywhere from big-box gyms to church halls to community centers.
At the Harrison Elementary School, sponsored by the Lakewood Recreation Department, classes are taught by Amy Annico, a trim hale and hearty black-haired young woman sporting a quick smile, bright blue sneakers, and hauling around a yellow Dewalt boom box about the size of an air compressor.
"One minute she was monkeying with that yellow thing," said Rita, "and then at nine o'clock exactly that yellow thing was blasting."
It was the blast off.
"I'm not really for nightclubbing at nine in the morning," Rita said, "but she makes it a lot of fun. It's like partying yourself into shape."
Zumba is different than many other fitness programs because people don't always take it for the fitness benefits, more often than not for the boogie and socializing, even though the results can be transforming. It is a cardiovascular calorie-burning hour of twisting and turning in varying states of synchronization to loud bouncy infectious music.
"They are taking it for the happiness and joy that they feel while they are doing it, and the fitness is just the result of this," said Alberto Perlman, who with Alberto Perez was a co-founder of the Zumba enterprise.
Zumba is an aerobic fitness program, including basic core fitness, married to dance routines. Set to full of life Latin American beats, it burns between 360 – 530 calories an hour, according to Harvard Health Publications. Sweating is not optional, since everyone starts sweating in a couple of minutes and doesn't stop until the end of class.
"Zumba is hard," said Olga, "but it's not hard like going to the gym. I have to force myself to do that, but with Zumba the music is going and you just want to move."
"It's fast-paced and you're just watching her feet up on the stage," said Rita between bites on a Reuben sandwich. "It's those blue shoes the whole time, trying to follow what she's doing, and then you immediately start sweating."
"Immediately!" echoed Vanessa. "Sweat was dripping down the small of my back before the warm-up was even over."
Amy Annico, a music teacher as well as part-time actress, has taught Zumba since 2008 at area YMCA's, Live Well Lakewood, health fairs, and retirement homes. She regularly attends the annual Zumba Instructor Convention in Orlando, Florida, upgrading her skills
"I'm trained in Zumba, which is for everyone," she said, "and Zumba Gold, which is for older, active adults, and Zumbatomic for kids." There is even Aqua Zumba, a water-based workout integrating Zumba with aqua fitness themes. A great deal of jumping and splashing is involved. Strapless bathing suits are strongly discouraged, for good reason.
"The Harrison school class is a great community class," Amy said. "Everyone's dancing, it's like a party, people are hooting and hollering and shaking, and the hour flies by and you don't even know it."
By all accounts shimmying, shaking and sliding, hooting and hollering, as well as chest pumping and bootie shaking, are generally encouraged subscribed to and applauded. You may not get a gold star, but you'll be a shooting star.
"I always say, don't be shy, give it a try," said Amy Annico. "It's all about spreading the joy of music from around the world with fantastic fitness and dance moves."
The word zumba is Colombian slang and means "move fast and have fun." It has been described as exercise in disguise. Set to four basic rhythms based on salsa, merengue, cumbia, and reggaeton, it is a non-stop workout that works all your endorphins out endorphins as well as working out your muscles.
Some people lose inches off their waistlines, others see their cholesterol drop and their energy levels rise, while still others simply reduce their stress levels. Some men even learn to dance and not make fools of themselves at weddings anymore.
Just as sweating is mandatory, so is staying hydrated.
"I told Vanessa to bring water, even though she doesn't like water, because I heard you get really thirsty at Zumba," said Rita.
"My whole bottle of water was gone before half the class was over, and I never drink water," said Vanessa. "Everybody was going back and forth to the water fountain getting more of it all class long. You don't get totally winded, even though it's non-stop dancing, but you do get totally thirsty."
Their dishes cleared off the table at the diner, coffee cups re-filled, and lingering over their lunchtime, the three women agreed that Zumba was the best way they could think of to exercise without actually exercising.
"The salsa moves are really good for you, your whole body is going, your hips are going," said Rita. "Amy is so animated, she makes all these noises, of hers, like she is definitely having fun doing it, and she makes it the same for everybody."
"It's just dancing from beginning to end, but it's exercise, too. You do it with joy, and afterwards you feel so good," added Olga. "It's guaranteed to put a smile on your face."
They all agreed Zumba is the best of both worlds. There are shortcuts to happiness and dancing is one of them. "Your whole body is moving, and you don't have time to think about working out," said Rita while walking back to their car. "It's like having your cake and eating it, too."
"Why don't we drive over to Tremont, have some cake for dessert, and go for a walk along the river?" Vanessa asked. "It's going to start getting cold soon." The winter in Cleveland was only six weeks away, Lake Erie freezing solid.
That's what the three Zumba gals for the day did, before the sun set, and the night's new frost stole in unnoticed.
147 Stanley StreetAmy AnnicoEd StaskusOlga CapasRita ZvirblisVanessa StaskusZumba
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