(SUFFOLK COUNTY, N.Y.) – Suffolk County District Attorney Raymond A. Tierney today announced the indictment of 51-year-old David Ostrove on charges of Grand Larceny in the First Degree for allegedly stealing money from the Schechter School of Long Island throughout his 11-year tenure with the school while serving as Chief Financial and Technology Officer and Director of Operations.
“As alleged in the indictment, this defendant was trusted to oversee and safeguard the funds of this institution, however, he violated that trust and instead stole money earmarked to educate children to fund his own lavish lifestyle,” said Tierney. “These alleged violations are clearly not only a breach of the trust between an employee, employer, and students, they are against the law.”
In addition to the Grand Larceny charge, Ostrove is also charged with Money Laundering in the First Degree both Class B Felonies.
According to the investigation, between March 2014 and April 2022 Ostrove used the school’s PayPal and Stripe accounts to transfer school funds into his own personal PayPal account. In an effort to allegedly conceal this money, Ostrove then transferred the school’s funds into multiple bank accounts at Bank of America and TD Bank where he was the sole account holder.
Ostrove allegedly purchased four vehicles including a 1965 Mustang, a 2021 Lincoln Navigator and two Mercedes Benz vehicles, which are registered to his wife and daughter. In addition, he allegedly used the stolen funds to purchase five houses on Fire Island between 2018 and 2021. The homes were purchased under five different shell corporations, which helped to shield Ostrove from being identified as the owner of the homes. The companies were incorporated with the New York State Department of State within days of the homes’ purchases. Ostrove further used these criminal proceeds to pay over $1.4 million dollars to make renovations on the homes and received approximately $600,000 in rental income on them.
In addition to buying homes and cars, Ostrove used the funds to pay his daughter’s college tuition, make home equity payments for his West Islip home, travel expenses, and the purchase of expensive sports memorabilia and collectible coins, which he would then auction off for profit. The funds were also used for purchases at high end clothing and jewelry stores, limousine trips and more than $1 million in cash withdrawals.
Prosecutors also included counts in the indictment charging Ostrove’s shell companies; TD Partners Equity, Inc.; Elliso Holdings, Inc.; BND Street Investors, Inc.; Triangle Properties, F.I., Inc. and Bayview Rentals, Inc., with violations of law. The BND Street Investors, Inc. company has been indicted on one count of Money Laundering in the First Degree and TD Partners Equity Inc., Elliso Holdings Inc., Triangle Properties, F.I., Inc., and Bayview Rentals Inc. have each been indicted on one count of Money Laundering in the Second Degree, a Class C felony.
If convicted The top count Class B felonies carry a minimum sentence of 1 to 3 years in prison and a maximum sentence of 8 1/3 to 25 years in prison.
On July 25, 2022, at his arraignment on the indictment, the Honorable John B. Collins ordered Ostrove held on $500,000 cash or $2 Million bond or $2 Million partially secured bond. Ostrove is being represented by John LoTurco. His next court date is August 1, 2022.
This case is being prosecuted by Assistant District Attorney Jessica Lightstone of the Financial Crimes Bureau.