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 CBS credit union posted a message on its website, saying that members will experience a transition to a new system on May 1. The University Credit Union acquired all assets and liabilities of the CBS employees’ credit union, and accounts remain insured up to $250,000.

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.

The scheme began to unravel on March 6, when a credit union employee discovered a suspicious $35,000 check made out to Rostohar, prosecutors said. An internal probe found that Rostohar had obtained $3,775,000 since January 2018, using a forged signature from a co-worker.

Rostohar was suspended on March 12. His wife called 911 that morning, telling police that her husband had stolen money from work and was planning to flee the state. Rostohar was arrested at his home and charged with bank fraud and identity theft. On March 14, a federal magistrate found him to be a flight risk and ordered him detained until trial.

More Biz

  • Andy Signore Screen Junkies

    'Honest Trailers' Creator Andy Signore Settles Defy Media Suit

    Andy Signore, the creator of Screen Junkies’ “Honest Trailers,” has settled a lawsuit against Defy Media challenging his firing for alleged sexual misconduct. Signore was one of the first figures to lose his job in the aftermath of the Harvey Weinstein harassment revelations in October 2017. Defy Media, which then owned Screen Junkies, terminated him [...]

  • Singer-rapper Psy performs during the 70th

    YG Agency Boss Quits as K-Pop Scandals Expand

    Yang Hyun-suk last week resigned from his remaining positions at YG Entertainment. The talent agency he co-founded is deeply mired in a series of inter-linked scandals that stretch from drugs to prostitution. Problems started with the band Bigbang and its star Seungri, but now also encompass other YG artists. Hwang Bo-kyung was appointed as the [...]

  • NEW YORK, NY – JUNE, 24:

    LGBTQ Stars Honored at Variety’s Power of Pride Celebration

    New York City felt the full Power of Pride on Monday, as Variety celebrated its inaugural issue devoted to the annual recognition of LGBTQ people worldwide. At an intimate gathering at Mr. Purple, the rooftop bar at Hotel Indigo Lower East Side in Manhattan, Variety’s cover stars and luminaries gathered for cocktails and the unveiling [...]

  • Motown Seeks to Block 'O-Town' Trademark

    Motown Seeks to Block 'O-Town' Trademark

    UPDATED: The boy band O-Town briefly rose to fame in 2000, with a star turn on MTV’s reality series “Making the Band.” But the reformed group has just one obstacle to its efforts to trademark its name: Motown Recordings. The label’s parent company, Universal Music Group, is trying to block the band from registering “O-Town” [...]

  • Alyssa Milano

    Alyssa Milano Settles $10 Million Suit With Former Accountant

    Actress Alyssa Milano has settled a legal battle with her former accountant as the case was on the verge of going to trial. Milano and her husband, agent David Bugliari, filed suit in 2017, alleging that accountant Kenneth Hellie had forged her signature on checks, failed to pay overdue bills and taxes and allowed costs [...]

  • J Balvin ‘Amicably’ Parts Ways With

    J Balvin ‘Amicably’ Parts Ways With Longtime Manager Rebeca Leon

    J Balvin and his longtime manager Rebeca León have “amicably” parted ways, reps for the singer and León confirmed to Variety. The news was first reported by Billboard. León — who also oversees the careers of fast-rising Spanish singer Rosalia as well as Colombian superstar Juanes, with whom she founded Lionfish Entertainment — began managing Balvin early in his career [...]

More From Our Brands

Access exclusive content