Embezzling

The regulator barred nearly a dozen former credit union employees from working with any financial instiutiotn following charges of theft, embezzlement and more.

The regulator issued seven prohibitions for offenses including attempted theft and conspiracy to commit bank fraud.

The lawsuit claims that the board didn't properly supervisor management, which allowed former CEO Edward Rostohar to embezzle more than $40 million.

Those that were prohibited from working at federally insured institutions include a former credit union employee who pleaded guilty to money laundering and embezzlement.

Regulators placed the $3 billion-asset institution into conservatorship less than a year after the New York City-based CU fired President and CEO Kam Wong in the wake of embezzlement charges.

Edward Rostohar, who was CEO of CBS Employees Federal Credit Union, could face up to 15 years in prison following a $40 million scheme that brought down the institution.

Edward Rostohar was arrested after his wife informed authorities he stole from CBS Employees Federal Credit Union and was preparing to flee the country.

The pair subject to the regulator's March prohibition orders both pleaded guilty and were ordered to pay more than $320,000 in restitution, among other punishments.

Despite strong performance in the industry overall, analysts expect regulators to shutter more institutions in the years ahead.

Kam Wong has been accused of submitting requests for fake expense reimbursements when he ran Municipal Credit Union.