A CBS Employees Federal Credit Union manager has been charged with embezzlement, accused of taking $40 million from CBS over 20 years.
Edward Martin Rostohar was found out after a colleague became rightly suspicious of a fraudulent cheque, on which Rostohar had forged a signature.
Rostohar, aged 62 and of Studio City was charged by authorities with aggravated identity theft and numerous felony counts of bank fraud. He was remanded into custody pending his arraignment hearing on 18th April. A judge ordered his detainment on the basis of him being a flight risk and an economic danger.
The National Credit Union Administration, the federal regulator of credit unions, said that it was liquidating the CBS Employees Federal Credit Union after finding that it was infact, insolvent and had no prospect of recovering its position. Despite this, members’ funds are protected by an insurance policy in place on the credit union.
CBS Employees’ assets, loans and shares were subsequently absorbed by Westwood based University Credit Union, which has promised that union members at CBS should experience no interruption in services.
Rostohar faces 30 years in prison if he is convicted of embezzlement/bank fraud and aggravated identity theft.