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CBS credit union manager gets 14 years for $40M embezzlement

Updated: September 16, 2019 07:41 PM

LOS ANGELES (AP) - The former manager of a credit union that served employees of the CBS television network has been sentenced to more than 14 years in prison for a two-decade embezzlement scheme that drained $40 million from the institution and forced it into insolvency.

Edward Rostohar pleaded guilty to bank fraud in May. The 62-year-old admitted he used the money to fund a gambling habit, buy luxury cars and watches, and travel by private jet. The U.S. Attorney's Office in Los Angeles said Monday that Rostohar paid his wife a $5,000 weekly allowance and took trips with "women half his age."

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The charges were announced in March, on the same day that the CBS Employees Federal Credit Union ceased operations. Its assets were assumed by University Credit Union in Los Angeles.

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(Copyright 2019 by The Associated Press. All Rights Reserved.)

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