CBS Employees C.U. manager charged with bank fraud, $40M embezzlement

Let me ask you this...

Could you embezzle over $40 million for two decades without your spouse knowing? Me thinks that can't be done, the spouse would have to be complicit.

Especially if they were receiving a $5,000 a month allowance, your spouse is buying cars, gambling, starting a business in Nevada and traveling by private jets.

Rostohar, 62, WAS the CEO at the now failed CBS Employees Federal Credit Union in Studio City.

On March 6th an employee at the credit union found a check for $35,000 made out to one Edward Rostohar without an explanation. That employee then did an audit of checks issued by the credit union since January 2018 and uncovered checks totaling about $3.8 made payable to Rostohar, according to the U.S. attorney. These checks also included the forged signature of another employee without the employee’s knowledge.

On march 12th Rosotohar was suspended after an internal investigation. Later that evening Rostohar's wife called 911 claiming her husband stole money fromt he credit union and was fleeing the country,

According to the press release, Rostohar, a former National Credit Union Administration examiner, made online payments to himself or stole funds by forging the signature of another worker at the credit union on checks payable to himself. The press release also stated that Rostohar told authorities that his experience as an NCUA examiner enabled him to avoid detection for a long time since he knew what examiners looked for when studying the finances at credit unions.

CBS Employees Federal Credit Union was liquidated by the NCUA on Friday. CBS Employees had about 2,800 members and $21 million in assets

Rostohar, who is in federal custody, is facing charges of bank fraud and aggravated identity theft, both felonies, according to a press release from the U.S. Attorney's Office for the Central District of California.


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