CBS Employees Credit Union Manager Charged With Bank Fraud, $40M Embezzlement

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An affidavit filed with the criminal complaint indicated that Edward Martin Rostohar used his position with the credit union, where he had worked for 30 years, to make payments to himself via online activity and the forging of checks.

The manager at CBS Employees Federal Credit Union has been placed in custody for allegedly embezzling $40 million from his employer.

According to the U.S. Attorneys Office, Edward Martin Rostohar was arrested March 12 and charged with two felony counts of bank fraud and identity theft. His arraignment is scheduled for April 18.

An affidavit filed with the criminal complaint indicated that Rostohar used his position with the credit union, where he had worked for 30 years, to make payments to himself via online activity and the forging of checks. Rostohar reportedly spent the embezzled money on gambling, expensive cars and watches, and travel by private jet. He is said to have purchased two cars with money from the credit union in addition to starting a business in Reno, Nevada, where he wrote tens of thousands of dollars' worth of checks to himself to cover business expenses. 

The alleged scheme was exposed on March 6 after a credit union employee found a $35,000 check made payable to Rostohar, but failed to have a reason for the high dollar amount listed, according to court documents. After the discovery, the employee conducted an audit of the credit union checks issued since January 2018 and found $3,775,000 in checks made payable to Rostohar. The checks also featured a forged signature of another employee without their knowledge or consent. Rostohar was suspended from his job on March 12, according to court documents, after an internal investigation uncovered "irregularities in the performance of your job duties." 

If Rostohar is convicted on both charges, he faces a maximum sentence of 30 years in federal prison and a $1 million fine on the bank fraud count, as well as a mandatory consecutive term of two years on the identify theft count.