Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 1 of 20 Page ID #:1 CRIMINAL COMPLAINT O 91 (Rev. 11/82) UNITED STATES DISTRICT COURT ~~~ ~ ~ a 3 ~ ~ L CENTRAL DISTRIC O~ F~~,~~, DOCKET NO. UNITED STATES OF AMERICA v. EDWARD MARTIN ROSTOHAR MAC ~ ~ 20 9 MaGis-r~.-rE°scASErro. ~~,p~g ~ pp r~ Complaint for violation of Title 18, United States Code, Sections 1344 and 1028A NAME OF MAGISTRATE NDGE LOCATION UNITED STATES MAGISTRATE JUDGE Honorable Steve Kim DATE OF OFFENSE PLACE OF OFFENSE unknown thdough-the present Los Angeles County Los Angeles, California ADDRESS OF ACCUSED (IF KNOWN) C~PLAINANT'S-F,TATE~v1ENT OF FACTS CONSTITUTING THE OFFENSE OR VIOLATION: (~ 1 ~ - ~., ~ ~ ~,: c;~ -; ~~ i ' ~- ~ _;_ .' CC _' r.;; See Attachment r -- .. ~ BASIS OF COMPLAINANT'S CHARGE AGAINST THE ACCUSED: (See attached affidavit which is incorporated as part of this Complaint) MATERIAL WI"I"NESSES IN RELATION TO THIS CHARGE: N~A SIGNATURE OF COMPLAINANT Being duly sworn, I declare that the foregoing is true and correct to the best of my knowledge. Alice Tsujihara oFFiciaL TITLE S ecial Agent, Federal Bureau of Investigation Sworn to before me and subscribed in my presence, SIGNATURE OF MAGIST DATE N~ _~ r 1. ~' :9 ,i a I March 14 2019 ~ ~~ a .C~ ~~> See Federal Rules of Criminal Procedure 3 and 54 ~i AUSA Andrew Brown, 11th floor, x0102 ,48 Probable Cause Arrest; in Ci~b~,od3~ Now~~J 1 1'_,J Detention Requested Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 2 of 20 Page ID #:2 Attachment Count One(18 U.S.C. & 1344 Beginning before 2000, and continuing through March 12, 2019, in Los Angeles County, within the Central District of California, and elsewhere, defendant EDWARD MARTIN ROSTOHAR,acting with the intent to defraud, knowingly executed and attempted to execute a scheme to defraud CBS Employees Federal Credit Union, a federally insured financial institution, and to obtain monies and funds owned by and in the custody and control of CBS EFCU by means of material false and fraudulent pretenses, representations, and promises, and the concealment of material facts. To execute the fraudulent scheme, defendant used his position as the manager CBS EFCU to write checks and make online payments to himself or on his own behalf from CBS EFCU,forging the signature of another employee at the credit union on the checks, thereby embezzling over $40 million from CBS EFCU. Count Two(18 U.S.C. & 1028A~ Beginning before 2000, and continuing through March 12, 2019, in Los Angeles County, within the Central District of California, and elsewhere, defendant EDWARD MARTIN ROSTOHAR knowingly transferred, possessed, and used, without lawful authority, a means of identification of another person during and in relation to a felony violation of Title 18, United States Code, Section 1344, Bank Fraud, as charged in Count One. Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 3 of 20 Page ID #:3 1 A F F I D A V I T 2 I, Alice Tsujihara, being duly sworn and under oath, hereby 3 depose and say as follows: 4 5 INTRODUCTION I am a Special Agent ("SA") of the Federal Bureau of 1. 6 Investigation ("FBI") assigned to the Los Angeles Division. 7 have been employed with the FBI as an SA since 1997. 8 assigned to the White Collar Crimes Squad, where I specialize in the 9 investigation of complex financial crimes, including bank fraud, 10 mortgage fraud, wire fraud, identity theft, investment fraud and 11 money laundering. 12 investigations during my career, I have received both formal and 13 informal training from the FBI and other entities regarding 14 violations of various fraud statutes. I am currently In addition to conducting numerous fraud SEEKING COMPLAINT IN SUPPORT OF PROBABLE CAUSE ARREST 15 16 I am 2. This affidavit is made in support of a criminal complaint 17 against EDWARD MARTIN ROSTOHAR ("ROSTOHAR") for bank fraud and 18 aggravated identity theft, in violation of Title 18, United States 19 Code, Sections 1344 and 1028A. 20 3. The information set forth in this affidavit is based upon 21 my participation in the investigation, encompassing my personal 22 knowledge, observations and experience, as well as information 23 obtained through my review of evidence, investigative reports, and 24 information provided by others, including other law enforcement 25 partners. 26 investigation; I have set forth only the facts that I believe are 27 necessary to establish probable cause for the complaint. I have not included every fact known to me concerning this 28 1 Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 4 of 20 Page ID #:4 1 INVESTIGATION BACKGROUND 2 ( EMBEZZLEMENT 3 On March 11, 2019 Lysa Simon, an attorney that represented 4. 4 CBS Employee Federal Credit Union (CBSEFCU), which I know from my 5 training and experience is a federally insured financial institution, 6 contacted the FBI National Threat Operations Center to report an 7 embezzlement by EDWARD ROSTOHAR of CBSEFCU. 8 be suspended by the Board of Directors the following day. 9 ROSTOHAR was going to On March 13, 2019, Detective Oscar Garza of the Los Angeles 5. 10 Police Department (LAPD) advised that LAPD also received information 11 from Simon and had arrested ROSTOHAR and executed a follow up search 12 warrant on his residence at 4318 Beck Ave., Studio City, CA on March 13 12, 2019. 14 are attached and incorporated by reference. 15 that when ROSTOHAR was arrested, he was driving his car which 16 contained over $200,000 in cash. 17 the arrest, told me that ROSTOHAR's current passport was on him at 18 that time. 19 on Garza's investigation of the case and his encounter with ROSTOHAR, 20 Garza believed that ROSTOHAR was a flight risk. 21 6. Garza's search warrant, including a related police report, Detective Garza told me FBI SA Bailey, who was present at ROSTOHAR was released on bond on March 13, 2019. On March 13, 2019, I and other FBI agents went to 22 ROSTOHAR's residence and asked to speak to him. 23 Miranda rights, which he waived. 24 Based a. We read him his He told us the following: ROSTOHAR was employed as a manager of CBSEFCU for 25 approximately 30 years and had been embezzling funds from the credit 26 union for approximately 20 years. 27 he tried to cover his activity. 28 2 He kept going as it snowballed as Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 5 of 20 Page ID #:5 1 b. Prior to his employment at CBSEFCU, ROSTOHAR was an Because of that, ROSTOHAR knew 2 auditor at NCUA for several years. 3 what NCUA auditors looked for in their exams and audits of the credit 4 unions. 5 operated a financial institution, and thus didn't really know what to 6 look for. 7 theft would not be discovered. ROSTOHAR knew how to respond to the auditors so that his c. 8 9 ROSTOHAR explained that the auditors themselves never ROSTOHAR explained that one of the items the auditors looked for were quarter end records, which was historical. In order 10 to hide his theft, ROSTOHAR adjusted the balance in General Ledger 11 Account 9999999, which was a clearing account. 12 went through this account. 13 account, drawing the funds from the credit unions' clients' 14 Certificate of Deposits. 15 CD's belonging to the clients but from the overall CD balance held by 16 the credit union. 17 the account. 18 d. Expenses and income ROSTOHAR deposited fake income into this The funds were not taken from individual Then the real expenses would be processed through Another item NCUA auditors looked for were negative ROSTOHAR would alter the credit union's records so that 19 earnings. 20 the credit union would appear to operate with positive earnings, even 21 if it was as little as $1,000. e. 22 After we asked ROSTOHAR what happened to the stolen He also described 23 money, he claimed he lost most of it gambling. 24 spending money freely, such as travelling by private jet, giving his 25 wife an allowance of $5,000 a week, and buying expensive watches. 26 also bought his Porsche and Telsa with funds stolen from the credit 27 union. 28 3 He Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 6 of 20 Page ID #:6 f. 1 ROSTOHAR said he started a business in Reno with his 2 business partner Ellen Burcham and purchased a real estate lot in 3 Reno, Nevada with stolen funds from the credit union. 4 payment to purchase 131 Mark Twain Ave., Reno NV 5 from stolen funds from the CBSEFCU. 6 cafe. g. 7 8 The down 89509 also came The business in Reno involved a ROSTOHAR deposited CBSEFCU checks into his personal bank accounts at Citibank and Chase. h. 9 Other properties ROSTOHAR owned were his residence at 10 4318 Beck Ave., Studio City, CA, one quarter share of a place in Cabo 11 (Mexico), and one half share of a house in Reno. i. 12 ROSTOHAR was asked what his recent large checks that 13 were in the tens of thousands of dollars from CBSEFCU were used for. 14 He answered that his Reno business just started and he needed more 15 money as it was only opened in December. 16 payment for his house was $5,000 a month. 7. 17 He added that his mortgage On 03/13/2019, I talked to LINDA TLEMSANI (TLEMSANI), TLEMSANI stated that she had called 911 and 18 wife of ROSTOHAR. 19 informed the police about ROSTOHAR's actions because she was afraid 20 that he would harm himself and that it was the right thing to do 21 after he said he stole from the credit union. 8. 22 On March 14, 2019, TLEMSANI called me at my work. When I 23 asked her what she meant by "doing the right thing by calling 911," 24 she responded that if someone steals and did something bad, she 25 believed in the justice system. 26 ROSTOHAR was in a state of panic and she didn't know what he would 27 do. 28 something stupid. She also believed at that time, She was afraid for his safety, that he might kill himself, or do She also didn't know where he was going, so she 4 Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 7 of 20 Page ID #:7 ROSTOHAR did not ask TLEMSANI to go with him; he 1 called the police. 2 was leaving by himself. 3 TLEMSANI replied "I had no idea where he going." 4 that she believes he is no longer a danger to himself and hopes he 5 will be released. 6 ROSTOHAR knows he is going to jail but TLEMSANI is hoping it is not 7 for the rest of his life. 8 9 9. When asked where she thought he would go, She said she would not flee. TLEMSANI stated TLEMSANI stated that TLEMSANI received $5,000 a week from ROSTOHAR and spent most of it on food, clothes, and expenses related to her work as an TLEMSANI advised that making a music 10 aspiring recording artist. 11 video and taking various classes was very expensive but that she 12 hoped to become a recording artist in the near future. 13 not make mortgage payments from her allowance. 10. 14 TLEMSANI did TLEMSANI did not appear to know the magnitude of the theft 15 and was hopeful that her residence at Beck Ave. would cover the loss 16 amount. 17 said she hoped he could give the money back. 18 not a spender. 19 money has to be somewhere." 20 he owns besides the Beck Avenue home. 11. 21 When she was told that it was many times that amount, she She explained, "He is I am more of a spender than he is" and that "the TLEMSANI did not know of any real estate When asked about the Cabo property and if she had been 22 there, TLEMSANI replied that she had been there a number of times and 23 it was a condominium in Cabo. 24 ROSTOHAR's brother, "Bobbie" would know the address. 25 was purchased many years ago. 26 27 She didn't know the address but THE FRAUD SCHEME NCUA 28 5 The property Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 8 of 20 Page ID #:8 1 12. On March 14, 2019, NCUA provided their preliminary findings 2 l of the ROSTOHAR's embezzlement: a. 3 4 ROSTOHAR, the credit union's long-term manager, removed funds by altering the payees on credit union checks. 5 b. His process was to pretend to withdraw funds from 6 member accounts by using the credit union's data processing system to 7 issue a check with a blank payee. 8 and address of a member on the credit union receipt to ensure the 9 credit union's physical records would show a member's name and He then manually typed the name 10 address as the payee information; the check was shown with a blank 11 payee on the data processing system. 12 withdrawn from share account, number 9999999-S1. 13 belongs to the credit union and is used as a clearing account. 14 c. Funds to issue the check were This share account Once the credit union check was issued on the data 15 processing system, he would manually type a payee of his choosing, 16 most often reflecting his name or an associated party name. 17 would deposit the altered check in an account that he controlled d. 18 Account 9999999-S1 was funded as follows. Then, he ROSTOHAR 19 identified and exploited a weakness in the ShareOne data processing 20 system. He posted entries to general ledger account #901000, Regular 21 Shares. This account is intended to reflect the aggregate of all 22 deposits held in the individual member share accounts listed on the 23 member share and loan trial balance. 24 entry moving a "deposit" from Regular Shares (account #901000) to the 25 credit union's share account (9999999-S1), he would then be able to 26 withdraw money out of the credit union's share account by issuing a 27 credit union check through Catalyst Corporate Credit Union had 28 D By making a general ledger Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 9 of 20 Page ID #:9 1 received several complaints from customers of unauthorized 2 transactions and withdrawals from their accounts. e. 3 Based on financial records of CBSEFCU up to February 4 28, 2019, NCUA reported a rough preliminary loss estimate of 5 $40,541,130. CONCLUSION 6 7 8 9 10 13. Based upon the foregoing facts and my training and . experience, I believe there is probable cause to believe that ROSTOFAR committed bank fraud and aggravated identity theft in violation of Title 18, United States Code, Sections 1344 and 1028A. 11 12 13 Alice Tsujihara, Spe al Agent Federal Bureau of Investigation 14 15 Subscribe this ` to and sworn before me day of March, 2019. ,, r fy 16 , a~. r 17 18 - r: UNITED STATES MAGISTRATE JUDGE ~ ~~ `" Ilv 19 20 21 22 23 24 25 26 27 28 7 ,~~.:- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 10 of 20 Page ID #:10 SW NO. STATE of CALIFORNIA, COUNTY of LOS ANGELES, ~EAI~CH WARRANT end i4FFlD~►VIT (AFFIDAVIT) Peacs Officer Q. Gaaza swears under oath that the facts expressed by hirrJher .n this Search Warrant and Aff~dsYit a~~d sr the attac~e~ anu ~nccrpoiated Siaiei~eegt c~~ Prob~iiie pause are True and that based Thereon neisne nas prooabfe cause to believe and does believe that the articles, property, and persons described below are lawfully seizable pursuant to Penal Code Section 1524 et seq., as indicated below, and are now located at the locations set forth below. Wherefore, Affiant requests that ±his Search Warrant be issued. NIGHT SE/ARCH REQUESTED: ~ YES ❑ NO FiOBBS SEALING REQUESTED: ❑ YES ~ NO RETURN EXTENSION REQUESTED: Q YES ~ NO d ELECTRONIC MONiTOrrciPlu REQIJESZED: ❑YES ~j ~fu SEALING REQUESTED(EVIDENCE CODE 104p-1042): ❑ YES ~ NO AY OF NOTIFICATION REQUESTED {PENAL CODE 1546.2b): ❑ YES ~ NO /~-~ AjS~gnaWre of giant) __ ~~EARCH IIVi4RR,ANT, THE PEOPLE OF THE STATE OF CALIFORNIA TO ANY PEACE OFFICER IN THE COUNTY OF LOS ANGELES: proof by a~davit, having been this day made before me by Peace Officer O. Garza that there is probable cause to believe that the property or person described herein may be found at the locations) set forth herein and that it is lawfully seizable pursuant to Penal Code Section 1524 et seq., as indicated below by "~"(s), in that: property was stolen or embeuled; property or things were used as the means of committing a felony; ❑ property or things are in the possession of any person with the intent to use them as a means of committing a public offense, or in the possession of another to whom he or she may have deiivered them for the purpose of concealing them or preventing their being discovered; property or things to be seized consist of any item or constitute any evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony; property or things to 6e seized consist of evidence that tends to show that sexual exploitation of a child, in violation of Section 311.3, or possession of matter depicting sexual conduct of a person under the age of 18 years, in violation of Section 311.11, has occurred or is occurring; ❑ there is a warrant to arrest a person; ❑ a provider of electronic communication service or remote computing service has records or evidence, as specified in Section 1524.3, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of any person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom he or she may have delivered them for the purpose of concealing them or preventing their discovery; ❑ property or things to be seized include an item or any evidence that tends to show a violation of Section 3700.5 of the Labor Code, or tends to show that a particular pe►son has violated Section 3700.5 of the Labar Cede; You are Therefore COMMANDED to SEARCH: (premises, vehicles, persons) See pages 1 - 5 For the FOLLOWING PROPERTY, THING(s) or PERSON(s): See pages 1 -5 AND TO SEIZE IT! THEM IF FOUND and bring it /them forthwith before me, or this court, at the courthouse of this court. This Search Warrant and Affidavit and attached and incorporated Statement of Probable Cause were sworn to as true and subscribed before me on this day of, , at A.M. / P.M. Wherefore, I find probable cause for the issuance of this Search Warrant and do issue it. NIGHT SEARCH APPROVED: ~ YES ❑ NO HOBBS SEALING APPROVED: ❑ YES ~ NO RETURN EXTENSION APPROVED: ❑ YES ~ NO ELECTRONIC MONITORING APPROVED: ❑ YES ~ NO SEALfNG APPROVED (EVIDENCE CODE 1040-1042}: ❑ YES ~ NO DELAY OF NOTIFICATION APPROVED(PENAL CODE 1546.2b): ❑ YES ~ NO (Signature of Magistrate) (Magistrate's Printed Name) .Judge of the Superior Court of California, County of Los Angeles, CCB Dept. Search Warrent.Coc -revised 04-22-2006 nn~v Search Warrant Page 1 of 10 CR / DR # 1915-07708 Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 11 of 20 Page ID #:11 1 YOU ARE THEREFORE COMMANDED TO SEARCH: 2 ~,ocatio~a ~o. 1: 3 4318 Beck Avenue 4 Studio City, CA. 916Q4 5 6 7 8 Two story family residence, tan stucco with red file roof on the east side of Beck Avenue. The 9 numbers 4318 are posted on the front of the house above the brown 2 car garage door. The 1Q front double brown door faces west. 11 12 13 Including but not limited to: 14 1). 2018, silver Parche, License plate 8CRB075, DMV shows the vehicle registered to 15 16 17 Edward Rostohar, 4318 Beck Avenue, Studio City CA 91604. 2). 2015, Tesla, License plate 8HLV251, DMV shows the vehicle registered to Edward Rastohar, P.O. Box 480051, Los Angeles CA 90048. 18 19 Page -2- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 12 of 20 Page ID #:12 1 The search of the location, vehicles, shall include saes, alb rooms, lacked or unlocked, and Z other par±s ±~:erpin. `The storage rooms, containers, safes, trash containers. The search shall 3 extend into all containers, desk,. cabinets, drawers, closets. briefcases, trash rPceptaeles, 4 recording media, mail boxes, garages, or other storage areas within the residence, as well as 5 any off-site storage facilities, leased, assigned, rented, owned or under the control of an~~ and 6 alI suspects. The search shad include any computers, computer-based storage media, wzhether 7 locked or unlocked, contained within the area described in this paragraph.. T'he search shall 8 further extend to cellular telephones, security monitoring devices and tapes (on computer or 9 other storage units, video tape or disc), the answering of telephones on the premises and the 10 receipt ar~d examination of any incomi~i~ fax documents. The officers are authorized, if 11 necessary, to remove the electran~c storage devices from the premises and conduct an offsite 12 evidentiary search of the electronic storage devices. 13 14 FOR THE FALLOWING P1~OPERTY: 15 Any documents including but not limited to: 16 1). Any items tending to establish the identity of persons who have dominion a1~d control of 17 the location, premises, automobiles, or items to be seized, including delivered mail., 18 whether inside the location or mail boxes, bills, utility bills, telephone bills, miscellaneous 19 addressed mail, personal letters, personal identification, purchase receipts, rent receipts, 20 sales receipts, tax statements, payroll check stubs, keys and receipts for safe deposit box(s), 21 keys and receipts for rental storage space, keys acid receipts for post office box or mail 22 drop rentals, ignition keys, car door and trunk keys, vehicle ownership certificates or "pink 23 slips,'" and/or vehicle registration slips. 24 2). Any business record files and hank records. Page -3- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 13 of 20 Page ID #:13 1 3). Any desktop computer and/or laptop computer located on the premises. 4}. finy recordation or voice transmissions on telephone answering machines, audio tapes and 3 telephone message receipt books, and written phone messages, and photography tending to 4 shave occupation of the residence /business and connection between co-conspirators, 5 whether identified, or unidentified, also digital pagers which ~r~ill document telephone 6 numbers of co-con~p;rators, and if ~ouil~, to activate the digital pagers` display mechanism 7 and to obtain messages from the pagers, answering machines, tape recorders, and an~r $ other recording devices, and to play such devices to obtain their messages. 9 10 11 5). An~~ examples of handwriting including letters, address books, business records, canceled checks, notes. andlor lists, 6). Any computer bardwa~re, software, and data, includitlg central processing units(CPUs) 12 hard disk drives, floppy disk drives, zip disk drives, tape drives, removable media drives, `I3 opticaUCD-ROM drives, servers, we~rkstatior~s, peripheral storage devices, floppy disks, 14 zip disks, magnetic tapes, cassette tapes, remoti~able storage media, and/or optical CD- 15 ROM disks or cartridges, or any other device or media capable of digitally or magnetically 16 storing data. 17 7). Computer or ce11 phone user accounts to establish owner/possessor of the device. 18 8). Any financial documents or spreadsheets in the name of CBS Employees Federal Credit 19 Union. 20 9). United States Passport in the name of Suspect Edward Rostohar. 21 10). Any large quantity on United States currency located inside the residence or in any of the 22 described vehicles registered to Edward Rostoi~a~~ 23 24 Page ~4- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 14 of 20 Page ID #:14 1 Based upon my training and experience I know that computers store data in a variety of 2 zormals end on occasion data stored on comgst~rs can be hidden, encr~~pte~ and /or protected 3 by password. I also know it is not always practical to search a computer for digital evide*~ce at 4 the location of the search for several reasons enumerated as follows: 5 a}. Searching a computer is a highl}~ technical process, ti~~hich requires specific expertise 8 and specialized ~quip~3~~iit. 7 bj. Computers today use a variety ofi operating systems, which require different methods 8 9 of accessing data and gathering evidence. c). The searching of computers requires the use of methods and procedures in a controlled 10 71 environment, which wil] ensure the integrity of the evidence. d). Computer hardwrare and storage devices may contain "booby traps'" that destroy and or 12 alter data. 13 Since computer data is particularly- vulnerable to inadvertent or intentional modi#ication or 14 destruction, a controlled cnviro~iment, such as a law enforcement laboratory, is essential to 15 cond«ct a complete and accurate analysis of the equipment and starage devices. I request that 16 your affiant b~ allowed to remove said electronic storage devices to ari off-site location for the 17 recovery and analysis of evidence, and that the LAFD Computer Crime Unit maintains the 18 digital image. 19 / 20 / 2~ r 22 ~ 23 / 24 / Page -5- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 15 of 20 Page ID #:15 1 I, Oscar Garza, Serial No. 32172, am a Detective For the Los Angles Police Department ~ (i,yYi~j assigned to Commercial Crimes lli~~isiQni~~lhit~ i"alIa: Unit. 'The unit is responsible 3 for investigating financial abuse of elders ranking from identixy theft, misuse of funds, end the 4 transfer and or sale of real or personal property. I have been a police officer for the City of 5 Los Angeles for over 23 years. I have investigated and arrested individuals for the crimes of 6 Elder rlbus~, Grand T}eft, EYl~bezzlerrlent and ~`~rgery, I ha~~e interviewed the persons 7 arrested for these crimps and gained knowledge on their methods of operation, how the}; 8 prepared for, perpetrate, and attempt to a~roid ic[entification a~1d arrest for their criminal related 9 activikies. 10 11 I have also received formal and informal training from more experienced fraud detectives and 12 bank fraud investigators in identity theft, stolen/forded checks, theft of access card 13 information, counterfeit check investigations, business embezzlement schemes, anc~ the various 1~4 methods utilized by suspects to commit the crimes of Elder Abuse, Gravid Theft, 15 Embezzlement and Forgery. 1 received training afid attended the Los Angeles County District 16 Attorney's seminar on investigation and prosecution of suspects) for Elder Abuse, 17 Embezzlement and Forgery. 19 On March 12, 2019, I, Detective Garza. Serial No. 32172, assumed investigative 20 responsibilities for an Embezzlement investigation, bearing DR 1915-07708. Person 21 Reporting Lysa Simon (Latil~yer) indicated Suspect Edward Rostohar stole millions of dollars 22 from CBS Employees Federal Credit Union. 23 24 My partner Detective Esquivel-Solis, S~riai No 27201. and I, responded to CBS Employees' Page -6- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 16 of 20 Page ID #:16 1 Federal Credit Union, 12001 Ventura Place, Suite No. 204, Studio City. Upon arrival we met ~ the president of the credit union, L1Qu~~as ~dti~~ards. Ed~~rarus indicated that on Marc} 6, 2013, 3 Chery Sicka -Assistant Manager, was looking for a copy of a check, in which a stogy payment 4 was placed on. While looking for the check, Sicka stumbled across a check in the amount 5 $35,OOO.QO made payable to Suspect Edward Rostohar, Manager. The check did nod indicate 6 why Rostol~ar had received such a high dollar amount check. Sicka became concern and 7 conducted an audit of CBS Employees federal credit Union checks issued since the ,Tanuary 8 2018 to the present and uncover numerous checks made payable to Rostohar, The total amount 9 of the checks is approximately $3,775,000.00. Sieka noticed that all the checks payable to 10 Rostohar contained what appeared to be Anna Nalbandyand's signature. 1'~Ialbandyand is the 11 CBS Employees Federal Credit Union's member services representative. Sicka showed 12 several of the checks to Nalbandyand and she stated that she had not signed the checks and did 13 not know why the checks were issued to Rostohar. 14 15 On March 12, 2419, Edwards along with other CABS Employees Federal Credit[inion staff 16 members had a meeting with Rostohar and presented him with a Memorandum. The 17 Memorandum indicated the following, "Matters of potential inappropriate conduct and 18 irregularities in the performance of your job duties have been brought to the attention ~f the 19 Board of Directors. An investigation has been commenced into these matter. Effective 20 immediately you are suspended from all your duties as Manager of the CBS Federal Credit 21 Union." Edwards indicated that Rostohar gathered all his belonging and was escorted out of 22 the office without saying a word. 23 24 On March 12, 2Q19, Los Angeles Police Officers Officers Burke, Serial No. 4Q X52 and Martin, Page -7- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 17 of 20 Page ID #:17 1 Serial No. 43577, assigned to North Hollywood Station, working unit 15A85, in foil uniform, 2 recei~~eti a G I i radio cal( (lncident~ No. I~F1312~~1 ~C~7). "I'h~ caller told the 911 dispatcher that 3 her husband had skolen money from work and was leaving the country, the phone line then 4 disconnected. The address of the ca11 was 4318 Beck Avenue, Studio City, CA 916p~. Upon 5 the officers' arrival, they detained Suspect Rosrohar wrthUut incident. ~`urther investigation 6 reveal~~i that ~ustul~ar was named as a suspect can an LAPL3 Investigative Report, bearing DR 7 1 15-t~'7708. kostohar was taken to FJorth Hollywood Station pending further investigation 8 (See attach statement farm). 9 10 Detective Esquivel and I; responded to North Hollywood Station a~~d interviewed Suspect 11 Rostohar. I read Rostohar his Miranda Rights per Los Angeles Poliee Department form 03.11. 12 Rostohar wan=ed his rights and stated that he has been steali~lg money from the CBS 13 Employees' Federal Credit Union for approximately 20 years. Rostohar said he first bean by~ 14 paying the monthly balances on his personal credit cards with funds from the credit anion's 15 online accounts or forging checks. after several years, Rostohar said h~ was just forging Anna 16 Nalbandyand signature on the credit unions checks and then depositing the checks in his 17 personal accounts. Rostolzar estimates Chat during the last 20 years, he has probably taken 18 mote than 40 million dollars. 19 20 Detectives Lee, Serial No. 32673 and Lewis, Serial 38100, spoke to Linda Tlenlsani, wife of 27 Suspect Rostohar. According to Linda, she and Rostohar have been legally married since 22 2Q05. On March 12, 2019, at approximatel~F 0900 hours, the Rostohar came into their bedroom 23 in a panic. Rostohar stated, "I knew this day was coming, I god to go. I have tQ leave the 24 country. I`m a con. Everything is true. I don't have time. I have to pack, I don't v~~ant to go to Page -8- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 18 of 20 Page ID #:18 1 jail, I'd rather die than go to jail." Rostohar packed his clothes into a black carry-on luggage 2 and anoiher black bag then placed them in±~ iris g:ey 1'orsch~. i3 4 According to Linda, Rostohar added that he stole money from the credit union but failed to 5 prnvide any more details. She added that the Rostohar has been. the credit union manager for 8 approximately 30 years and is the trust horre~t person she kn~w~s. 7 8 A criminal history of Suspect Eduard Rostohar utilizing Department resources revealed no 9 past criminal history. A Department of Motor Vehicle check revealed Rostohar was issued 1Q license No,~~~~T'he address on file as of 10/2/2008 is 431$ Beck Avenue, Studio City- 11 CA. 91604. 12 13 It is my opinion, based on my training, experience and the facts enumerated in this affidavit 14 ghat a crime of E~nbezzlenient, Califor~iia Penal Code Section 503 has occurred. It is further 15 my t~elief that a search of Rostohar's residence and a forensic analysis of the computers seized 16 from his residence, as well as other electronic media storage device, could yield additional 17 evidence in the criminal prosecution of the suspect for the above-mentioned crime. ~E:3 19 Based upon my training and experience, I request this Search Warrant be endorsed for night 2Q time service based upon the facts that Rostohar has called his wife and informed her that he is 21 in the process of bailing out ofjail It is imperative that Detectives conduct a search of his 22 residence and collect any evidence as soon as possible to prevent the destruction of evidence. 23 I therefore, request an endorsement permitting search during the night time hours. 24 / Page -9- Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 19 of 20 Page ID #:19 LDS A[YGELES POLICE DEPARTMENT Tape iVo. IiVVESTIGATlVE Name ~G -~~ L~-t ~~ ~i~ ~~ ~~~~~ ~ L I ~ I t ~j i Gary Residence I~ddress ~ Cily I Busu~a55 i.~~rass Descent v Ric ~~o ~~w~/¢G~ ~ ~~~ Location of Internees Ff recording an officer's action, complete shaded areas and statement secllon ony. Dateffime of Iniernew Witness No. Sex ACTIOfV /STATEMENT FORM Hair Eyes Height Intervle~v+nglRepartin~ OffiGgr ~"Weight DU@ Age Page R or Bkg No '(~ ~ Zip Code Pnone Zip CUd9 Phone Driver Lic. NolOther ID ,Seri&t No of . . 1.~ f ~} ~ S(at~ ~iwsion ~— ~ Sera! No. IC~Ncer Compisiing A'11RANDA ADMONITION j f . You have ttie ri0ht to remain sifenl. Do you understand? 2. Anything you say may be used against you in Court. Do you understand? ou wave t.e rich, Ic the prese~~ce o.an attorney be~se srd durir~ any questioning. 9. ; Do you understand? 4. If you cannot afford an attorney, ona will be appointed for yon, free of charge, before any questioning If you want. Do you understand? — If a waiver Is desired: uo you want to talk about what happened? Statement: include wfio, what, when, where, why, and how. On March 12,2019 at approximately 092a hours my partner, (Officer Burke # 40352) and I, (Officer Martin #43577) were assigned to North Hollywood unit 15A85-W2. We were in f~lE uniform, driving a marked black and white police vehicle. We received a radio calf of PR stated that husband stole money from work at 4318 Beck Ave, Inc :19a3120016~7 Radio call comments: PR STATED ON LlNE,FiUSBAND STOLE MaNEY FROM ~fV~RK, LEAVING GOUI~TRY, PFD DiSC~NNEGTEn {~INE, REUSED TO ANSWER QUESTl~"~~, LINE DISCONNEC?'~D Upon an our arrival, my partner and I met with PR {later identified as the wife of Suspect } why advised officers her husband was upstairs packing his belongings and was panning to f!y out of state. She stated that her husband (later identified as Rostohar, Edward} took money from his employer {CBS Federal Credit Union). She then went back inside the location 4~~8 Beck Ave. #38887 My partner then requested one additional unit and a supervisor. Officer Delbar ,,.... ,- ~,.. . . ~s~ ~-, .,.~ ., . ~ . • ~ ~. ~ ~~vut"~. vy~, and officer Gomez ~ ~~~w ~:~~6r c3iiivCu c'i~ s ;ci"ic at a~~it'i~tiiiia~+Ciy 0935 Smith # 35819 15L70 arrived at scene at approximately 0945 hours. Officer Gomez and ! daor knocked Rostohar's neighbors to gather information regarding Rostohar but were met with negative results. 03..1 Case 2:19-mj-01037-DUTY Document 1 Filed 03/14/19 Page 20 of 20 Page ID #:20 ~ffic~r~ #orme~+ a tactical plan #~ deor k^ock the residency 6^ cis more time in attempt to gather more information. As C7fficers were approaching the residence, tine front garage door opened and a silver Porsche ~~!a~ !-e~!Arsing out of the drive wad. c'~fi~icers then appr~~c~ed uP~?lri~' ~C1a advised the driver (Rostohar) to Burn ofd the vehicle and exit the vehicle pending a Theft Investigation. Rostoh~r wras~ identife~ t~~vu~i~ .n California Drivers License (' Officer Delbar, officer Gomex, and Sgt. Smith entered the location to gather information ~er~ardi~g the i^cid~^; #rim Ra~tohar'~ wife. My partner and I detained Rostohar pending a theft investigation. Rostohar advised Officers he was going to the store. He was recently fired from his job at CBS Credit U nion. We advised Rostohar he was detained due to a theft investigation regarding a unanimous caller stating he stale money from his employer. Niy partner asked Rostohar if he had money on him. Rostohar advised Officers he has money in his luggage that were located inside his vehicle. (unknown amount) The money inside the luggage was his and not his employers. Ros#ohar gave consent to open/search his vehicle's trunk and c~k~s~rv~d three bags of luggage. Officer Burke observed a large amount of cash inside one of the bags in the trunk of the vehicle. L asked Rostohar if he was going to fly somewhere today. He stated that he was going to fly out to Austin, TX to see his son. Rostohar advised officers he received a termination letter from his employer regarding an investigation and wanted to #ell his son in person regarding the termination, Defective Lee #32623 from the NHWD Theft Table arrived at scene. He advised to transport Rostohar to the NHWD Station pending a thef+ investigation. 1527 officer pe~roza 39723 and c~ffice~ Areval~ #38078 responded to 7 001 Ventura Ave (CBS Bank) and spoke with the employees at the location. The employees stated there is a open investigation going on with Rostohar. A report was filed at Devonshire Division a few days prior. Det Jarvis #27605 from the Valley Commercial Crimes division was contacted regarding the investigation, My Partner advised Det Jarvis of the incident. Det Garza #32172 arrived at the NHWD Station and interviewed Rostohar. My partner and I booked Rostohar with the advisement from Det Garza at Va{ley Jail.