Long-Time CEO of California-based CU accused of $40 million embezzlement
Feds say Edward Rostohar’s inside knowledge as a former NCUA examiner enabled him to conceal his massive fraud scheme for 20 years.
Edward Martin Rostohar, a long-time president/CEO of the CBS Employees Federal Credit Union, is in jail awaiting an April 18th court hearing where he will be charged with embezzling $40 million over two decades.
He allegedly spent the Studio City, Calif-based credit union members’ funds on gambling, expensive cars, private jet travel, and a Reno, Nevada business and home, according to court documents and federal prosecutors in Los Angeles.
On March 12, the credit union informed Rostohar, a former NCUA examiner, that he had been suspended from his job after an internal investigation uncovered irregularities in the performance of his job duties. According to court documents, Rostohar’s wife called 911 later that day, telling police that her husband was leaving the country because he stole money from the credit union.
After authorities took him into custody, the 62-year-old Rostohar admitted to the massive embezzlement scheme that lasted for 20 years.
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