The former CFO of The Schechter School, David Ostrove, has been found guilty of misappropriating millions of dollars to finance his personal investments, children’s college tuition, and purchasing multiple cars and houses.
The court confirmed that Ostrove transferred over $8 million of school funds into his own personal accounts to acquire multiple vehicles and homes, utilizing multiple shell companies to conceal ownership of the properties.
Other misappropriations of funds included home renovations, his daughter’s college tuition, home equity loan payments, personal travel, and the acquisition of memorabilia such as sports and political items, as well as collectible coins.
“While David Ostrove was entrusted to manage this money to benefit the children of The Schechter School, he was secretly lining his own pockets,” said District Attorney Raymond Tierney. “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.”
Vehicles and real estate were seized after a court order was issued in a separate civil forfeiture proceeding in the Suffolk County District Attorney’s office. Ostrove is due back in court for sentencing on April 17.
Grand larceny is a first-degree class B felony in New York, with money laundering carrying equal weight. He faces up to 25 years in prison.
