Manager of CBS employees’ credit union stole $40M over 20 years, authorities say
Fox News,
by
Dom Calicchio
Original Article
Posted By: MissMolly,
3/31/2019 5:25:31 AM
A credit union set up to serve employees of CBS was shuttered last week after its manager was accused of embezzling $40 million over 20 years, according to reports. The suspect, identified as Edward Martin Rostohar, 62, was a 30-year employee of the Studio City, Calif.-based credit union, reports said. He was arrested at his Studio City home and charged with bank fraud and identity theft, authorities said. If convicted on both counts, he faces up to 32 years in prison and a $1 million fine, Deadline Hollywood reported.
Reply 1 - Posted by:
LoneVoice 3/31/2019 6:19:06 AM (No. 18635)
How does a credit union not have an external audit for 20 years?
How did this credit union not have internal and external controls to prevent any one person or small group of people from having complete private access?
Are credit unions exempt from accounting regulations?
51 people like this.
Reply 2 - Posted by:
lakerman1 3/31/2019 6:43:19 AM (No. 18636)
Former graduate student worked at the National Credit Union Administration back in the 1990a An auditor, and explained the process pretty well.
One of the complications he faced was auditing in the basement of someone´s home - that many small credit unions were set up like that. And audits were thorough.
What is so surprising in this case is that the man was writing large checks to himself. That should have showed up early in his job.
35 people like this.
Reply 3 - Posted by:
Strike3 3/31/2019 8:18:55 AM (No. 18641)
Steal forty million dollars and get slapped with a one million dollar fine. I´ll take those odds.
49 people like this.
Reply 4 - Posted by:
FleetUSA 3/31/2019 8:23:38 AM (No. 18634)
I would think other heads should roll as well, going up the chain.
The employee who found the problem should get a large bonus.
24 people like this.
Reply 5 - Posted by:
Frenesi1 3/31/2019 9:20:04 AM (No. 18630)
When I worked at Disney, the manager of the credit union embezzled money and what happened? Nothing. Disney didn´t care...said it was the business of the credit union even though this guy was a Disney employee. All that happened to the guy was he had to pay back the money...wasn´t millions but it was substantial as I recall.
23 people like this.
Reply 6 - Posted by:
trackman999 3/31/2019 11:18:42 AM (No. 18642)
That should for an invaluable college course. Stealing and embezzlement 101. The how to´s and where to´s for a 21st century world. Much more lucrative than Blah Blah Studies.
9 people like this.
Reply 7 - Posted by:
saguni 3/31/2019 11:20:46 AM (No. 18637)
Decades ago I worked at a medium sized (15 branches) family owned bank. I worked with the grandsons and great-grandsons of the founder.
Rumor was a "family member" had figured how to track "dormant" accounts.
Dormant accounts with a balance and no activity for three years are closed and the balance is sent to the State Treasurer´s office as "Unclaimed Property." The owner, or heirs, can claim property by providing the proper identification.
This person was withdrawing funds from the "abandoned accounts" thinking no one would ever notice. When the family found out, the relative was fired and forbidden from ever working for the bank again, but other than that they kept it hushed up because they didn´t want the bank´s reputation to take a hit.
12 people like this.
Reply 8 - Posted by:
Smart11344 3/31/2019 2:25:23 PM (No. 18633)
The TV station I worked at did have a credit union. Turns out there was some hanky panky there. My feelings were, my employeer didn´t need to know squat about where my money went.
A firend was in our credit union. He needed a quick loan to fly to Texas. The doctors thought his father was dying. Thankfull, the father survived. A true dipstick on the credit union said, well, your father didn´t die. He maust have been a full fledged rotten democrat.
9 people like this.
Reply 9 - Posted by:
Vesicant 3/31/2019 2:52:59 PM (No. 18640)
Obviously a democrat, doing what they do.
9 people like this.
Reply 10 - Posted by:
ZeldaFitzg 3/31/2019 4:11:33 PM (No. 18643)
I couldn´t find out anything on the internet about this fellow except current news articles about his firing. And these showed no photograph.
I hadn´t experienced until recently that information that is available cannot be found in multiple searches.
Can anyone recommend a search engine that is on the up and up? I have tried using Google, Bing (because my computer mysteriously defaults to that after several Google searches), Dogpile, and Duck Duck Go.
8 people like this.
Does anyone have a street address in Studio City where I may send a note of thanks?
Hopefully Mary Mapes and Dan Rather lost more than a few bucks.
8 people like this.
Reply 12 - Posted by:
konocti95 3/31/2019 8:56:18 PM (No. 18632)
#11 - I found a link to press release from the US Attorney in Los Angeles on Duckduckgo:
https://www.justice.gov/usao-cdca/pr/credit-union-manager-who-allegedly-embezzled-40-million-his-employer-faces-bank-fraud
I didn´t find one for Hillary or Whats-his-name, though.
8 people like this.
Reply 13 - Posted by:
TXLakeRat 3/31/2019 9:57:38 PM (No. 18631)
To 1, 2, 5 & 6 (among others)
Credit unions are, doubtless, the most under-regulated industries in the country. Take a look at any/all.
Their officers are grossly overpaid and their services are less than acceptable. But, its all because they are so under-regulated. They make more money than they know what to do with; ergo, rather than being honest and returning it to their members, they waste it on facilities and officers´ compensation (not necessarily in that order.)
This would be a great SWAMP to drain, when/if PDJT gets through with the DC swamp.
8 people like this.
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