This is not good news for a number of CBS employees.
A longtime manager the CBS Employees Federal Credit Union has been arrested and charged with embezzling more than $40 million from his employer over the past 20 years and the National Credit Union Administration — a federal agency that regulates credit unions — announced Friday that it has liquidated the CBS Employees Federal Credit Union and shut down its operations.
Edward Rostohar faces felony counts of bank fraud and aggravated identity theft.
Rostohar was arrested two weeks ago and remains in custody because he is considered a flight risk and an economic threat to the community, according to Nic Hanna, U.S. Attorney for the Central District of California, who announced the charges today. If convicted on both counts.
The alleged scheme was exposed beginning on March 6 when a credit union employee found a $35,000 check made payable to Rostohar, and the check did not include the reason for the high dollar amount, according to court documents. The employee conducted an audit of the credit union checks issued since January 2018 and discovered $3,775,000 in checks made payable to Rostohar and which contained the forged signature of another employee without the employee’s knowledge or consent.
Rostohar faces a maximum of 32 years in federal prison and a $1 million fine.
Wait, you steal $40 million and you face a $1 million dollar fine?