Edward Martin Rostohar, a CBS Employees Federal Credit Union manager, has pleaded guilty to embezzling $40 million from his employer.
Rostohar was arrested in March and charged with embezzling $40 million from his employer over two decades. Federal prosecutors said he spent the money on gambling, cars, watches, and travel by private jet. The charges against Rostohar, 62, of Studio City, were felony counts of bank fraud and aggravated identity theft.
He entered the guilty plea in Los Angeles federal court on Monday. He is set to be sentenced on Sept. 16.
The National Credit Union Administration, the federal agency that regulates credit unions, liquidated CBS Employees Federal Credit Union and discontinued its operations after Rostohar’s arrest, after determining it was insolvent with no prospect of restoring viable operations on its own. Member services continue and deposits remain protected by insurance, the NCUA said in a statement.
According to an affidavit, from before 2000 until March of this year, Rostohar used his position to make online payments from the credit union to himself or by forging the signature of another credit union employee on checks payable to Rostohar.
Prosecutors said Rostohar was caught March 6 when a credit union employee found a $35,000 check made payable to him with no reason for the amount. The employee audited credit union checks since January 2018 and discovered $3,775,000 in checks to Rostohar, with the forged signature of another employee who had not given consent, prosecutors said.
An attorney for Rostohar did not immediately respond to TheWrap’s request for comment.
Pamela Chelin contributed to this story