Obama-Era White House Advisor Pleads Guilty To Wire Fraud

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Bryan Babb Contributor
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A former White House advisor for President Barack Obama plead guilty to one count of wire fraud after planning to steal $218,000 from charter schools, according to documents released by the Department of Justice (DOJ) Friday.

“Seth Andrew, a former White House advisor, admitted today to devising a scheme to steal from the very same schools he helped create,” said Damian Williams, U.S. Attorney for the Southern District of New York, according to the documents. “Andrew now faces time in federal prison for abusing his position and robbing those he promised to help.”

Andrew helped to create School Network-1 in 2005, which was “a series of public charter schools” based in New York City, according to the DOJ documents. Andrew left his role at School Network-1 in 2013 after taking a position with the Department of Education (DOE).

After his time in the DOE, Andrew would join the Obama White House in a senior advisor role for the Office of Educational Technology, according to the DOJ. In 2017, once he finished serving in the White House, Andrew severed all of his ties with School Network-1.(RELATED: Obama Education Secretary Believes Students Should Stay Out Of School Until Gun Legislation Is Passed)

Each of the charter schools in School Network-1 had to maintain an “escrow” account that could only be accessed following the dissolution of the school, according to the DOJ. However, Andrew used his access to close the escrow accounts following his departure from School Network-1 and placed $218,000 into fraud accounts.

Andrew was arrested in April 2021 when he was charged with “wire fraud, money laundering, and making false statements to a financial institution in connection with a series of banking transactions he conducted in 2019.”

Andrew faces a maximum sentencing of 20 years in prison for one count of wire fraud, according to the DOJ. Andrew’s sentencing will be determined on April 14.