CBS Employees Federal Credit Union Manager Accused of Embezzling $40 Million

The credit union’s members aren’t expected to be affected, officials say

A CBS Employees Federal Credit Union manager is in custody and charged with embezzling $40 million from his employer over two decades. Federal prosecutors said Edward Martin Rostohar spent the money on gambling, cars, watches, and travel by private jet.

The National Credit Union Administration, the federal agency that regulates credit unions, announced Friday that it has liquidated CBS Employees Federal Credit Union and discontinued its operations 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.

University Credit Union, located in Westwood, immediately assumed CBS Employees’ assets, loans and member shares.

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