The former financial manager of a prestigious Jewish school in New York has been convicted of a massive embezzlement totaling more than $8 million.
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David Ostrove, 52, misappropriated school funds to finance a luxurious lifestyle, which included acquiring five beach houses, indulging in limousine rides, and purchasing rare collectible cars and coins. He now faces a potential sentence of up to 25 years in prison.
Ostrove served as the chief financial officer, technology director, and operations manager at the Schechter School of Long Island for 11 years before his fraudulent activities were uncovered. His embezzlement exceeds the school's annual operating budget for most years, as per school tax documents.
According to the Suffolk County District Attorney, Ostrove allegedly diverted approximately $8.4 million of school funds into accounts solely controlled by him. These funds were then utilized for personal purposes, fueling Ostrove's extravagant lifestyle. The embezzlement scheme is reported to have begun in 2014 and continued until April of this year, according to court documents.
The district attorney's office revealed that the former financial manager misused funds to acquire rare automobiles like a 1965 Ford Mustang, amassing a collection of five beach houses, and acquiring valuable sports and political memorabilia. Ostrove utilized five different shell companies to conceal the stolen money.
These illicitly obtained funds were also used to purchase luxury items such as a Lincoln SUV, Mercedes-Benz cars, and other extravagant expenses totaling over $1 million, including jewelry, clothing, and limousine services.
Furthermore, the embezzled funds financed substantial upgrades totaling $1.4 million for the acquired beach houses, from which Ostrove profited by leasing them out and collecting over $600,000 in rental income. Ostrove also diverted some of the embezzled tuition money to cover his daughter's college expenses.
"This individual was supposed to oversee and safeguard the funds of this institution, but he violated that trust and instead stole money intended to educate children to fund his lavish lifestyle," the district attorney remarked in a statement. "These apparent breaches are not just violations of trust between employer, employee, and students, they are against the law."
Ostrove is also facing a $35 million lawsuit filed by the school seeking damages.
Prestigious Jewish school principal in New York convicted of embezzlement - Ynetnews
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