For over eight years, David Ostrove was able to siphon off more than $8,4 million in school funds for his personal use from a Williston Park private school. Ostrove was convicted of his crime this March.
Suffolk District Attorney Ray Tierney said that the 52-year-old West Islip man had worked for the Schechter School of Long Island as its Chief Financial and Technology Officer for 11 years. He used the millions he illegally obtained to buy himself a 1965 Mustang, a Lincoln Aviator, and a Mercedes Benz. Ostrove also purchased five beach houses on Fire Island, using five different shell corporations created to purposefully shield him from being identified as the owner. Ostrove used the money to pay for more than $1.4 million dollars’ worth of renovations on the beach homes, and then collected over $600,000 in rental income from them.
In addition to buying homes and cars, Ostrove used the stolen funds to pay for his daughter’s college tuition, to make payments on his home equity loan for his West Islip home, cover personal travel expenses, and finance the purchase of expensive sports and political memorabilia and collectible coins which he would then have auctioned off for his own profit. The stolen funds were also used by Ostrove for purchases at high-end clothing and jewelry stores, limousine trips, and more than $1 million in cash withdrawals.
The vehicles and real estate were seized in a separate civil forfeiture proceeding. That civil case is still pending and will resume following Ostrove’s sentencing in the criminal case.
Ostrove was sentenced to 8 1/3 to 25 years in prison after a jury found him guilty of grand larceny and money laundering.
According to Tierney, the sentence sends a clear message that white collar crime will not be tolerated in Suffolk County
“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,” he said in a statement.
Evidence at trial showed that between March 2014 and April 2022, Ostrove used the Schechter School’s accounts to transfer more than $8 million dollars of school funds into his own personal accounts.
Ostrove’s corporations, BND Street Investors, Inc., TD Partners Equity, Inc., Elliso Holdings, Inc., Triangle Properties F.I., Inc., and Bayview Rentals Inc. were each found guilty of money laundering.
In addition to his prison sentence, the judge ordered Ostrove to pay for the full $8.4 million in restitution and each of the corporations were fined $500,000.
