Former CFO Convicted Of Embezzling $8 Million From Long Island School’s Funds

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Mariane Angela Contributor
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The ex-chief financial officer of the prestigious Schechter School in Long Island was convicted Tuesday for embezzling over $8 million from the school’s funds.

David Ostrove, 52, was convicted of first degree grand larceny and first degree money laundering, according to the Suffolk County District Attorney’s Office. Ostrove’s company, BND Street Investors, Inc., was also found guilty of first degree money laundering, while his other companies, TD Partners Equity, Inc., Elliso Holdings, Inc., Triangle Properties F.I., Inc., and Bayview Rentals Inc., were convicted of second-degree money laundering. (RELATED: Guy From Ohio Reportedly Pretended To Be Emirati Prince, Stole $10 Million, Feds Allege)

Ostrove used the money to buy five luxury beach houses on Fire Island, several expensive cars and a large collection of rare items, the District Attorney’s Office stated. The stolen funds were also used to pay for Ostrove’s daughter’s college education, according to the news release. The spending spree extended to $1.4 million in renovations for his illegally acquired properties, more than $1 million on luxury goods and services, and even the setup of a fraudulent gift card program intended to support school events, from which he redirected $1.58 million into his pockets, the release said.

“While David Ostrove was entrusted to manage this money to benefit the children of the Schechter School, he was secretly lining his own pockets,” Suffolk District Attorney Raymond Tierney said in a statement. “The jury here concluded that the defendant’s lavish lifestyle was funded using the tuition dollars of the hardworking parents of the Schechter School students, and thankfully, the jury held him accountable.”

Ostrove faces a possible sentence of up to 25 years in jail.