UPDATE: The Lucky Childe confirmed that Edward Rostohar was an investor for them and that they are closed indefinitely.
The Lucky Childe released this statement on Thursday:
"We were shocked and devastated to learn of the media reports in regard to his arrest. While we are not aware of any details that have not already been released, the ownership and management of The Lucky Childe has cooperated fully with law enforcement and will continue to do so."
This is a developing story.
The former manager of a Los Angeles-based credit union pleaded guilty to embezzling millions of dollars. Some of that money was used to buy a home and start a business here in Reno.
62-year-old Edward Rostohar allegedly used the money to pay a $5,000 monthly mortgage on a home in old southwest Reno.
The Justice Department says he also started The Lucky Childe coffee shop in December of last year and wrote himself checks to cover the business's costs.
Rostohar allegedly embezzled $40 million from the CBS Employees Federal Credit Union over 20 years and spent much of that money gambling, traveling by private jet and buying homes and cars.
He was caught during a company audit in March.
In April, The Lucky Childe announced on Facebook it was closing due to unforeseen circumstances.
We reached out to the owner for comment, but haven’t heard back yet.
The credit union Rostohar worked at has now been bought by University Credit Union.
Rostohar faces up to 30 years in federal prison when he’s sentenced in September.
Rostohar has been in federal custody since his arrest on March 13.
(The Department of Justice contributed to this report.)
