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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.