November 29, 2022

Maryland Heights Residents

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Administrator charged with stealing $8.4M from private school

3 min read

A personal university administrator was billed Monday with stealing $8.4 million from the school that utilized him. Officials say he employed the cash to obtain five households on Fire Island, 4 luxury motor vehicles and collectible cash.

David Ostrove of West Islip allegedly stole the dollars in the course of his 11-yr tenure at Schechter University of Lengthy Island, in which he served as main economical and technological innovation officer and director of functions, mentioned Suffolk County District Legal professional Raymond Tierney.

“As alleged in the indictment, this defendant was dependable to oversee and safeguard the money of this institution, nevertheless, he violated that believe in and as a substitute stole revenue earmarked to teach youngsters to fund his own lavish life style,” Tierney said in a statement.

“These alleged violations are clearly not only a breach of the belief involving an staff, employer, and pupils, they are from the law,” he included.

Ostrove has been charged with first-diploma grand larceny and revenue laundering.

In a assertion to Extensive Island Business Information, John LoTurco, Ostrove’s lawyer, reported “David Ostrove adamantly denies the allegations towards him, and we will vigorously defend him by means of demo if vital.”

In the meantime, we will carefully scrutinize the District Attorney’s evidence and fiscal records by retaining an unbiased forensic auditor to assess the accuracy of the prosecutor’s promises,” LoTurco said. “It should be famous that Mr. Ostrove is presumed harmless, has no prior arrests, and has the like and assistance of his household who is endeavoring to submit the disappointing exorbitant bail set by the Courtroom these days. We will for that reason symbolize our client zealously in the course of the pendency of the criminal case and civil forfeiture make any difference to guarantee the most effective achievable final result on behalf of our client.”

Prosecutors say that concerning March 2014 and April 2022 Ostrove allegedly applied the school’s PayPal and Stripe accounts to transfer faculty funds into his very own individual PayPal account. He then allegedly attempted to conceal this funds by transferring the school’s resources into various financial institution accounts at Lender of The us and TD Financial institution exactly where he was the sole account holder.

Ostrove allegedly purchased four luxurious autos including a 1965 Mustang, a 2021 Lincoln Navigator and two Mercedes Benz autos, which are registered to his wife and daughter, officers claimed.

And he allegedly utilised the stolen money to acquire  five residences on Hearth Island involving 2018 and 2021 underneath 5 different shell companies, which helped to protect Ostrove from getting determined as the proprietor of the residences.  Incorporated with the New York Condition Section of Condition within days of the homes’ purchases, the shell providers had been also integrated in the indictment charges.

Prosecutors say Ostrove allegedly applied these proceeds to pay about $1.4 million bucks to renovate the homes and received around $600,000 in rental income on them.

He allegedly employed the resources to spend his daughter’s college or university tuition, make residence equity payments for his West Islip property, travel fees, and to get athletics memorabilia and collectible coins, which he would then auction off for earnings.

The cash were being allegedly applied for purchases at significant-stop garments and jewellery outlets, limousine journeys and a lot more than $1 million in money withdrawals.

In a assertion to Extended Island Small business News, the Schechter Faculty of Extensive Island explained “This particular person is accused of a systematic, subtle, and very carefully contrived fraud on a chilling scale. If convicted, this person would also be responsible of something further than the theft of funds: the destruction of have confidence in. Not just with the college administration but with our mom and dad, the college, and most crucial – our students. Even though pounds have allegedly been embezzled what can not be stolen is the future of the Schechter Faculty. We will arise from this working experience more powerful, wiser, and with a cautionary tale for every single establishment that today’s online fiscal know-how can be the burglar’s weapon of decision.”

Ostrove, who faces up to 25 decades in jail, was ordered held on $500,000 money or $22 million bond or $2 million partly secured bond.

His subsequent court docket date is Aug. 1.

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