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Eugene

(61,900 posts)
Sat Mar 30, 2019, 05:41 PM Mar 2019

CBS Employees Credit Union Shuts Down As Manager Charged With Embezzling $40 Million

Source: Deadline Hollywood

CBS Employees Credit Union Shuts Down As Manager Charged With Embezzling $40 Million

by Erik Pedersen
March 29, 2019 5:22pm

The longtime manager the CBS Employees Federal Credit Union has been arrested and charged with embezzling more than $40 million from his employer over the past 20 years. Edward Rostohar faces felony counts of bank fraud and aggravated identity theft.

In conjunction with the arrest, the National Credit Union Administration — a federal agency that regulates credit unions — announced Friday that it has liquidated the CBS Employees Federal Credit Union and shut down its operations. University Credit Union immediately assumed CBS Employees’ assets.

Rostohar, 62, of Studio City, was arrested two weeks ago and remains in custody because he is considered a flight risk and an economic threat to the community, according to Nic Hanna, U.S. Attorney for the Central District of California, who announced the charges today. If convicted on both counts, Rostohar faces a maximum of 32 years in federal prison and a $1 million fine.

An arraignment is set for April 18.

-snip-


Read more: https://deadline.com/2019/03/cbs-employees-credit-union-manager-charged-embezzling-40-million-ed-roshotat-1202585395/
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CBS Employees Credit Union Shuts Down As Manager Charged With Embezzling $40 Million (Original Post) Eugene Mar 2019 OP
Trump has brought this flagrant corruption on. Irishxs Mar 2019 #1
'over the past 20 years' elleng Mar 2019 #2
Down deep, I agree. That was just my first reaction. Irishxs Mar 2019 #3
Corruption and crimes are endemic to capitalism Farmer-Rick Mar 2019 #4

Farmer-Rick

(10,185 posts)
4. Corruption and crimes are endemic to capitalism
Sun Mar 31, 2019, 10:22 AM
Mar 2019

Corruption is built into the economic system. Trump is just the most recent manifestation of it. And this embezzler is doing what all businesses do in the end.

"You can only expect a company to serve the social interest as long as it serves its own interest. The archives of the Federal Trade Commission, the Food and Drug Administration and other government agencies are full of cases concerning reputable companies that don’t think twice about breaking the law when they think it is to their advantage. It is not uncommon for a company to break a particular law, even sometimes with full knowledge that this violation will be discovered. The company figures that the cost of the fine ultimately levied will represent only a fraction of the profit to be realized by the violation of the law itself.”

So those who are ethical, those who are moral and truthful have a disadvantage in a capitalist system. Soon all businessmen and bankers are corrupt just to be successful. Some just get caught at it sooner than others.

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