U.S. District Judge Otis Wright II sentenced former C B S Employees FCU CEO Edward Rostohar to 169 months in federal prison for embezzlement.
Rostohar's roughly two decades of embezzlement from CBS Employees FCU led to the decision by the National Credit Union Administration to liquidate the Studio City, Calif.-based credit union and discontinue its operations after determining it was insolvent with no prospect of restoring viable operations on its own.
Rostohar, who pleaded guilty in May to one count of bank fraud, used his position to make online payments from the credit union to himself or by forging the signature of another credit union employee on checks made payable to himself, according to a news release from the Department of Justice. He falsified the credit union's records to hide his fraud and make it appear to be profitable despite it suffering losses of more than $40 million as a direct result of his scheme.
Rostohar has agreed to forfeit his ill-gotten gains.
