Economy
Related: About this forumCBS Employees Credit Union Shuts Down As Manager Charged With Embezzling $40 Million
Source: Deadline Hollywood
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.
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Read more: https://deadline.com/2019/03/cbs-employees-credit-union-manager-charged-embezzling-40-million-ed-roshotat-1202585395/
Irishxs
(622 posts)elleng
(130,974 posts)More to it than trump.
Irishxs
(622 posts)Farmer-Rick
(10,185 posts)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 dont 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.