CBS Employees Federal Credit Union Manager Arrested For Embezzling $40 Million
The longtime manager the CBS Employees Federal Credit Union has been arrested. Edward Rostohar charged with embezzling more than $40 million from his employer over the past 20 years. He also faces felony counts of bank fraud and aggravated identity theft.
The National Credit Union Administration announced Friday that it has liquidated the Credit Union and shut down its operations. University Credit Union immediately assumed CBS Employees’ assets.
Rostohar was arrested two weeks ago. He remains in custody. United States Attorney Nic Hanna considers him a flight risk. Rostohar faces a maximum of 32 years in federal prison and a $1 million fine if convicted.
Federal prosecutors allege Rostohar used his position to make online payments to himself or forged the signature of another employee on checks to himself for nearly 20 years. Rostohar allegedly spent the money on gambling, expensive cars and watches and travel by private jet.
A credit union employee exposed the scheme on March 6. The employee found a $35,000 check made payable to Rostohar. Auditors than conducted an audit of the credit union checks issued since January 2018. He soon discovered $3,775,000 in checks made payable to Rostohar and which contained the forged signature of another employee without the employee’s knowledge or consent.
The credit union immediately suspended Rostohar from his job. Later that day, Rostohar’s wife called 911 and told the dispatcher that her husband had stolen money from work and was leaving the country.
He admitted that he had been stealing money from the credit union for 20 years. Rostohar allegedly estimated he stole $40 million from the credit union. An NCUA examination up to February 28 revealed a potential loss to the credit union of $40,541,130.
The leadership of the SBS Employees FCU announced the takeover last week on their website.