Ex-CEO enters plea deal over $40 million theft
The former CEO of the now-defunct C B S Employees FCU has agreed to a plea deal with federal prosecutors in which he admits to stealing more than $40 million over the past 20 years.
As CUToday.info has reported extensively here, here, and here, Edward Rostohar managed to embezzle more than $40-million from a credit union that had just $21 million in assets at the time it was shuttered and merged into University Credit Union.
Prosecutors said the funds were used to pay for expensive cars and watches, private jet travel, gambling, and a number of properties, including his own 4,300-square-foot home in Studio City. According to court documents, Rostohar has agreed to forfeit millions of dollars in assets, as well as properties in California, a café in Reno, Nev., other properties in Nevada, and a resort property in Mexico. The values of those properties was not included in court filings, although his home is valued by Zillow as worth approximately $2.3 million.
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