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Former Calif. CU CEO Sentenced to 14 Years in Prison for $40 Million Fraud

In a rare move, the NCUA publicly comments on Edward Rostohar’s 20-year scheme that led to the credit union’s collapse.

Federal judge rules in case against a former credit union CEO. Federal judge rules in case against a former credit union CEO. (Source: Shutterstock)

The former CBS Employees Federal Credit Union President/CEO Edward Rostohar will spend 14 years in federal prison for his $40 million embezzlement that led to the financial collapse of the Los Angeles-based credit union, nearly $2 million in uninsured losses, lost jobs of long-time employees and a multi-million dollar class action lawsuit against board members.

U.S. Court District Judge Otis D. Wright II in Los Angeles sentenced the 62-year-old Rostohar Monday. The former executive and NCUA examiner who managed to conceal his embezzlement scheme for two decades agreed to forfeit his ill-gotten gains, including bank accounts in his name and the names of his shell companies, luxury cars, homes in Studio City, Reno, Nev. and Mexico, expensive watches, jewelry and cash. Court documents do not estimate the total value of the properties, cars and bank accounts.

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Peter Strozniak

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