“The manager of a credit union for CBS employees pleaded guilty in Los Angeles federal court on Monday to a $40 million embezzlement scheme,” Variety reports. “Edward Rostohar, 62, was arrested in March after the scheme began to unravel. According to prosecutors, he admitted to stealing money from the bank for the last 20 years.”
Rostohar is due for sentencing Sept. 16, with prosecutors expected to push for up to 15 years in prison, the report notes.
“In the plea agreement, he agreed to forfeit various bank accounts and personal property, including watches, jewelry, a Tesla and a Porsche, as well as precious coins and bars seized from the Porsche,” Variety reports. “Authorities believe that Rostohar gambled away much of the proceeds of the fraud. He is also accused of spending some of it on private jet flights, and to start a business in Reno, Nev.”
The report notes that federal officials shut down the CBS Employees’ Federal Credit Union, which served about 2,800 members, after discovering the fraud. Assets and liabilities were transferred to the University Credit Union.