August 10, 2022

bandapilot

Business Activity

Administrator charged with stealing $8.4M from non-public college

Administrator charged with stealing $8.4M from private school

A non-public college administrator was charged Monday with stealing $8.4 million from the college that employed him. Officers say he used the cash to purchase 5 houses on Fireplace Island, 4 luxurious autos and collectible cash.

David Ostrove of West Islip allegedly stole the cash throughout his 11-year tenure at Schechter College of Lengthy Island, the place he served as chief monetary and expertise officer and director of operations, mentioned Suffolk County District Legal professional Raymond Tierney.

“As alleged within the indictment, this defendant was trusted to supervise and safeguard the funds of this establishment, nevertheless, he violated that belief and as an alternative stole cash earmarked to teach kids to fund his personal lavish way of life,” Tierney mentioned in an announcement.

“These alleged violations are clearly not solely a breach of the belief between an worker, employer, and college students, they’re towards the legislation,” he added.

Ostrove has been charged with first-degree grand larceny and cash laundering.

In an announcement to Lengthy Island Enterprise Information, John LoTurco, Ostrove’s lawyer, mentioned “David Ostrove adamantly denies the allegations towards him, and we’ll vigorously defend him by means of trial if obligatory.”

Within the meantime, we’ll intently scrutinize the District Legal professional’s proof and monetary data by retaining an impartial forensic auditor to evaluate the accuracy of the prosecutor’s claims,” LoTurco mentioned. “It must be famous that Mr. Ostrove is presumed harmless, has no prior arrests, and has the love and assist of his household who’s endeavoring to submit the disappointing exorbitant bail set by the Court docket right now. We’ll due to this fact symbolize our consumer zealously all through the pendency of the felony case and civil forfeiture matter to make sure the absolute best consequence on behalf of our consumer.”

Prosecutors say that between March 2014 and April 2022 Ostrove allegedly used the college’s PayPal and Stripe accounts to switch college funds into his personal private PayPal account. He then allegedly tried to hide this cash by transferring the college’s funds into a number of financial institution accounts at Financial institution of America and TD Financial institution the place he was the only real account holder.

Ostrove allegedly purchased 4 luxurious autos together with a 1965 Mustang, a 2021 Lincoln Navigator and two Mercedes Benz autos, that are registered to his spouse and daughter, officers mentioned.

And he allegedly used the stolen funds to purchase  5 homes on Fireplace Island between 2018 and 2021 below 5 totally different shell companies, which helped to protect Ostrove from being recognized because the proprietor of the houses.  Integrated with the New York State Division of State inside days of the houses’ purchases, the shell firms have been additionally included within the indictment fees.

Prosecutors say Ostrove allegedly used these proceeds to pay over $1.4 million {dollars} to renovate the houses and acquired roughly $600,000 in rental revenue on them.

He allegedly used the funds to pay his daughter’s faculty tuition, make house fairness funds for his West Islip house, journey bills, and to purchase sports activities memorabilia and collectible cash, which he would then public sale off for revenue.

The funds have been allegedly used for purchases at high-end clothes and jewellery shops, limousine journeys and greater than $1 million in money withdrawals.

In an announcement to Lengthy Island Enterprise Information, the Schechter College of Lengthy Island mentioned “This particular person is accused of a scientific, subtle, and thoroughly contrived fraud on a chilling scale. If convicted, this particular person would even be responsible of one thing past the theft of money: the destruction of belief. Not simply with the college administration however with our dad and mom, the college, and most vital – our college students. Whereas {dollars} have allegedly been embezzled what can’t be stolen is the way forward for the Schechter College. We’ll emerge from this expertise stronger, wiser, and with a cautionary story for each establishment that right now’s on-line monetary expertise may be the burglar’s weapon of selection.”

Ostrove, who faces as much as 25 years in jail, was ordered held on $500,000 money or $22 million bond or $2 million partially secured bond.

His subsequent court docket date is Aug. 1.