A long-time credit union manager is accused of embezzling $40 million from his institution over a 20-year period. Unfortunately, the credit union was unable to survive the losses and was forced to close.
While small to medium sized businesses are forced to rely upon trusted employees, that doesn't mean that we should not review their work closely and, in fact, suggests we should review more thoroughly.
A credit union that serves employees of the CBS television network has been liquidated as one of its long-time managers faces charges of embezzling $40 million from the institution over a 20-year period, authorities announced Friday. Edward Rostohar, 62, of Studio City, California, was arrested March 12 and charged in connection with embezzling money from the CBS Employees Federal Credit Union to pay for a gambling habit, buy luxury cars and watches, and travel by private jet, the U.S. Attorney’s Office said. The charges were announced the same day as the National Credit Union Administration said the credit union was insolvent and had no prospect of restoring operations on its own. They said Rostohar acknowledged stealing money from the credit union for 20 years and estimated that he had taken more than $40 million, a figure confirmed with the NCUA.