Credit union liquidated as manager charged with embezzlement

LOS ANGELES (AP) — A credit union that serves employees of the CBS television network has been liquidated as one of its long-time managers faces charges of embezzling $40 million from the institution over a nearly 20-year period.

The U.S. Attorney’s Office in Los Angeles said Friday that 62-year-old Edward Rostohar was arrested March 12 and charged in connection with embezzling money from the CBS Employees Federal Credit Union to fund a gambling habit, buy luxury cars and watches, and travel by private jet.

Prosecutors say Rostohar was ordered detained after a judge found that he was a flight risk and an economic danger to the community. It’s unclear whether Rostohar has an attorney.

The charges were announced the same day as the National Credit Union Administration said operations had been discontinued at the credit union.