LOS ANGELES — A credit score union that serves workers of the CBS tv community has been liquidated as one among its long-time managers faces expenses of embezzling $40 million from the establishment over a 20-year interval, authorities introduced Friday.
Edward Rostohar, 62, of Studio Metropolis, California, was arrested March 12 and charged in reference to embezzling cash from the CBS Staff Federal Credit score Union to pay for a playing behavior, purchase luxurious automobiles and watches, and journey by personal jet, the U.S. Lawyer’s Workplace mentioned.
Rostohar was ordered detained after a decide discovered that he was a flight threat and an financial hazard to the neighborhood. It’s unclear whether or not Rostohar has an lawyer.
The costs have been introduced the identical day because the Nationwide Credit score Union Administration mentioned the credit score union was bancrupt and had no prospect of restoring operations by itself. College Credit score Union in Los Angeles assumed CBS Staff’ property, loans and member shares, in keeping with prosecutors.
An announcement on the web site of CBS Staff Federal Credit score Union tells its members that their accounts will stay unchanged till techniques are totally transferred on Monday.
“College Credit score Union was chosen due to the protection and soundness of the establishment, the strong product choices for members, and the credit score union’s means to supply the absolute best member expertise by way of this transition,” the assertion mentioned.
Prosecutors mentioned Rostohar used his place as a supervisor to make on-line funds to himself from his employer or by forging the signature of a fellow worker on checks made out to himself.
They are saying the embezzlement started someday earlier than 2000 and continued till March 6, when prosecutors say a credit score union worker discovered a $35,000 verify made out to Rostohar and not using a motive listed for the excessive greenback quantity.
That’s when the worker carried out an audit and located $3.7 million in checks had been made out to Rostohar since January 2018, prosecutors mentioned. He was suspended from his job shortly after.
Rostohar was arrested after his spouse known as 911 to say her husband had stolen cash from his employer and was about to depart the nation, prosecutors mentioned.
They mentioned Rostohar acknowledged stealing cash from the credit score union for 20 years and estimated that he had taken greater than $40 million, a determine confirmed with the Nationwide Credit score Union Administration.