Manager Steals $40 MILLION from Credit Union

Moderators: richierich, ua900, PanAm_DC10, hOMSaR

Post Reply
 
National757
Topic Author
Posts: 486
Joined: Mon Jul 16, 2007 3:05 am

Manager Steals $40 MILLION from Credit Union

Sun Mar 31, 2019 12:21 pm

Unreal how a 30 year employee can steal 40,000,000 USD over the past 20 years and go undetected until this month. Internal contols anyone?

CBS Employees Credit Union Shuts Down As Manager Charged With Embezzling $40 Million
by Erik Pedersen
March 29, 2019 5:22pm

The longtime manager [of] 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.


https://deadline.com/2019/03/cbs-employ ... 202585395/
Top
 
910A
Posts: 1898
Joined: Sat Apr 04, 2015 2:11 am

Re: Manager Steals $40 MILLION from Credit Union

Sun Mar 31, 2019 2:12 pm

National757 wrote:
Unreal how a 30 year employee can steal 40,000,000 USD over the past 20 years and go undetected until this month. Internal contols anyone?

Sounded like the guy was in charge of internal controls. Gambling can cause people to ruin their lives..White collar crime, probably will just get a slap on the wrist (I'm kidding) for $40m..
Top
 
User avatar
readytotaxi
Posts: 7680
Joined: Mon Dec 11, 2006 2:09 am

Re: Manager Steals $40 MILLION from Credit Union

Sun Mar 31, 2019 2:52 pm

Once you get a taste of the high life with someone elses money it is hard to turn back. The fact he was able to do this for 20yrs should make alarm bells ring in other companies.
you don't get a second chance to make a first impression!
Growing older, but not up.
Top
 
ltbewr
Posts: 15522
Joined: Thu Jan 29, 2004 1:24 pm

Re: Manager Steals $40 MILLION from Credit Union

Sun Mar 31, 2019 3:46 pm

Credit Unions are governed and deposits insured by a separate Federal agency like the FDIC for regular banks. It seems to me too much trust was put into one person, none or not enough outside oversight or audits. Perhaps member-depositors on the board ignored or didn't follow up with finanical reports, maybe too embarrassed to admit or in on the theft.
In recent years many small banks and CU's have merged due to the increased levels of regulations put in after the 2008 crash. Hopefully the members won't take too much of a hit, but it is likely this CU will have to merge with another or dissolve due to their major long term losses and need for stronger internal financial controls.
Top
 
B777LRF
Posts: 2770
Joined: Sun Nov 02, 2008 4:23 am

Re: Manager Steals $40 MILLION from Credit Union

Sun Mar 31, 2019 8:00 pm

There's currently a case running in Denmark, where a public servant embezzled around 20M USD from various social projects, by transferring less money than they had been granted and pocketing the difference for herself. Been going for 15 years before getting caught. Lived the high life in South Africa and had a very expensive hobby involving horses. She'll end up getting 6-8 years, and the money's largely gone.
Signature. You just read one.
Top
 
dfwjim1
Posts: 2499
Joined: Fri Sep 09, 2011 8:46 pm

Re: Manager Steals $40 MILLION from Credit Union

Sun Mar 31, 2019 11:03 pm

Lol...the end of the good life for his wife too.
Top
 
KentB27
Posts: 476
Joined: Fri Oct 02, 2015 2:20 pm

Re: Manager Steals $40 MILLION from Credit Union

Mon Apr 01, 2019 4:05 pm

It's amazing how some people who do this sort of thing probably would have never been caught, or at the very least significantly prolonged getting caught if they hadn't gotten so greedy. A lot of people who fraudulently steal money get cocky when they get the rush of stealing and getting away with it. Then they slowly start taking more and more. It often builds up to the point where they don't realize how out of control it has gotten and they end up getting caught.

It really sucks that everyone else working at that credit union is probably going to lose their jobs because the manager is a crook.
Top
 
User avatar
c933103
Posts: 4949
Joined: Wed May 18, 2016 7:23 pm

Re: Manager Steals $40 MILLION from Credit Union

Tue Apr 02, 2019 1:34 am

With those capital letters in title I would have expected it's actually billions or so as given that they're always dealing with money that's not a high figure
It's pointless to attempt winning internet debate. 求同存異. よく見て・よく聞いて・よく考える
(≧▽≦) Nyan! Nyan! Nyan! Nyan! Nyan! Nyan! Nyan! Nyan!
(≧▽≦) Meow Meow Meow! Meow Meow Meow Meow!
You are now at your youngest moment in your remaining life.
Top
Post Reply

Who is online

Users browsing this forum: Baidu [Spider], DocLightning, Dupli, luckyone and 124 guests

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos