L.I. man sentenced to up to 25 years for stealing $8.5M from private school
A Long Island man got a prison sentence of eight to 25 years for stealing more than $8.4 million from a private school where he worked for over a decade, officials said Wednesday.
David Ostrove, 52, served as the financial and technology officer for the Schechter School of Long Island, a private K-12 school in Williston Park, for 11 years.
Ostrove transferred millions of dollars of school funds “into his own personal accounts,” prosecutors said.
The West Islip resident then used the stolen funds to buy luxury vehicles for his personal use — including a Lincoln Aviator, a Mercedes Benz and a 1965 Mustang — as well as five beach houses on Fire Island, according to authorities.
Those houses were purchased through five different shell corporations, which were purposefully created to shield him from being identified as the owner.
About $1.4 million of stolen funds were used to pay for renovations on the properties. Ostrove then collected over $600,000 for renting out houses, according to the Suffolk County district attorney’s office.
Investigators also found he used some of the money to pay for his daughter’s college tuition, and to buy expensive goods, such as sports and political memorabilia, high-end clothing, and collectible coins, which he would then have auctioned off for profit. He also took more than $1 million in cash withdrawals.
Last month, a Suffolk County jury found Ostrove guilty of first-degree grand larceny and money laundering.
Besides receiving a lengthy prison sentence, Ostrove was ordered to pay $8.4 million in restitution. In addition, each of his shell corporations was fined $500,000.
“This sentence sends a clear message that we take white collar crime extremely seriously here in Suffolk County,” District Attorney Raymond Tierney said in a news release. “We are satisfied that with both the verdict and sentence that justice has been attained for all of the students, staff, and the community at the Schechter School.”
