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Longtime Member Sues CBS Employees FCU’s Board & Supervisory Committee

Victor Webb says directors and supervisory members neglected fiduciary duties and failed to supervise the CEO, who stole more than $40 million.

Lawsuit filed. Lawsuit filed. (Source: Shutterstock)

In 1970, Victor Webb of Los Angeles opened an account at the CBS Employees Federal Credit Union that had been chartered just nine years earlier to serve the financial needs of the national television network and Mary Tyler Moore Productions.

Forty-nine years later, Webb is suing the credit union’s board of directors and supervisory committee members for $40 million because they neglected to perform their fiduciary duties and failed to supervise former CBS Employees FCU President/CEO Edward Rostohar. He is scheduled for sentencing in September after pleading guilty to bank fraud in a 20-year embezzlement scheme that bilked more than $40 million from the Studio City, Calif.-based credit union that had $21 million in assets.

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