Credit Union Manager Who Allegedly Embezzled $40M from His Employer Faces Bank Fraud, Identity Theft

[TexasTowelie]

Credit Union Manager Who Allegedly Embezzled $40 Million from His Employer Faces Bank Fraud, Identity Theft Charges


LOS ANGELES – A long-time manager at CBS Employees Federal Credit Union is in federal custody on a criminal complaint alleging he embezzled $40 million from his employer over two decades and spent the money on gambling, expensive cars and watches, and travel by private jet.

Edward Martin Rostohar, 62, of Studio City, has been charged with two felony counts: bank fraud and aggravated identity theft. He was arrested on March 12 and has been ordered detained as both a flight risk and an economic danger to the community. Rostohar’s arraignment is scheduled for April 18.

The charges against Rostohar were made in conjunction with today’s announcement by the National Credit Union Administration (NCUA), a federal agency that regulates credit unions, that it has liquidated CBS Employees Federal Credit Union and discontinued its operations after determining CBS Employees was insolvent with no prospect of restoring viable operations on its own. University Credit Union, located in Westwood, immediately assumed CBS Employees’ assets, loans, and all member shares.

According to an affidavit filed with the criminal complaint, beginning before 2000 and continuing until this month, Rostohar used his position as a manager at the credit union, a federally insured financial institution, to make online payments from the credit union to himself or by forging the signature of another credit union employee on checks made payable to himself.

Read more: https://www.justice.gov/usao-cdca/pr/credit-union-manager-who-allegedly-embezzled-40-million-his-employer-faces-bank-fraud

[Demovictory9]

1. I am a ucu member

[TexasTowelie]

2. In that case, you might here some stories about the CBS FCU from the new members.

At least you will have a a heads up on the discussion.

[Socal31]

3. I'm a VP/CCO who oversees $25mm in warehouse lines.

I'd be caught in about 24 hours if I ever decided to turn to a life of crime.

How the hell was this able to go on....

[TexasTowelie]

4. Obviously the correct oversights weren't in place.

Usually these type of crimes occur when there is only one employee in charge of multiple functions when either a second person needs to be involved or when the job functions need to be split to two people. The employer believes that they are getting a deal by having to pay only one employee rather than hiring a second employee.

[pnwmom]

5. That's what I want to know. How could a crime of this scale have gone undetected? n/t