CBS Employees’ Credit Union Shutters Amid $40 Million Embezzlement
A credit union that served CBS employees has been shut down following the discovery of a $40 million embezzlement, federal officials announced Friday.
The CBS Employees’ Federal Credit Union, based in Studio City, served about 2,800 members. Federal authorities announced that the credit union has been liquidated, and all members have been transferred to the University Credit Union.
The move comes two weeks after the credit union’s manager, Edward Martin Rostohar, 62, was arrested and accused of a long-running embezzlement scheme. Rostohar worked at the credit union for 30 years, and allegedly admitted to authorities that he had been stealing money for the last 20 years.
Prosecutors say Rostohar gambled away much of the money, and used much of it on lavish personal expenses, including private jet flights, expensive watches, and a Porsche and a Tesla. He also gave his wife a $5,000 weekly allowance, and used some of the money to start a business in Reno, Nev., according to a federal complaint.
https://variety.com/2019/biz/news/cbs-credit-union-embezzlement-shuts-down-1203176576/