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