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National757
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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/
 
910A
Posts: 1895
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..
 
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readytotaxi
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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.
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ltbewr
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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.
 
B777LRF
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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.
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dfwjim1
Posts: 2498
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.
 
KentB27
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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.
 
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c933103
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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
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