Suffolk County District Attorney Raymond A. Tierney today announced that David Ostrove, 52, of West Islip, was found guilty by a jury of grand larceny and money laundering, for stealing over $8.4 million dollars from the Schechter School of Long Island, a Williston Park private school, throughout his 11-year tenure while serving as its Chief Financial and Technology Officer.
“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.”
The evidence at trial established that between March 2014 and April 2022, Ostrove used the Schechter School’s accounts to transfer over $8 million dollars of school funds into his own personal accounts. With the stolen funds, Ostrove purchased vehicles for personal use including a 1965 Mustang, a Lincoln Aviator, and a Mercedes Benz. Ostrove also acquired five beach houses on Fire Island, which were purchased using five different shell corporations created to purposefully shield Ostrove from being identified as the owner.
Ostrove further used the illegal proceeds 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. The vehicles and real estate were seized pursuant to a court order obtained by the Suffolk County District Attorney’s Office in a separate civil forfeiture proceeding. That civil case is still pending and will resume following Ostrove’s sentencing in the criminal case.
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.
On March 12, 2024, Ostrove was convicted of Grand Larceny in the First Degree, a Class B felony, and Money Laundering in the First Degree, a Class B felony, after a jury trial heard before Supreme Court Justice John B. Collins. Additionally, Ostrove’s corporation, BND Street Investors, Inc., was found guilty of Money Laundering in the First Degree, and his other corporations – TD Partners Equity, Inc., Elliso Holdings, Inc., Triangle Properties F.I., Inc., and Bayview Rentals Inc. – were each found guilty of Money Laundering in the Second Degree, a Class C felony.
Justice Collins ordered Ostrove remanded during the pendency of his case. Ostrove is due back in court for sentencing on April 17, 2024, and faces up to 25 years in prison. He is being represented by Ralph Franco, Esq.
This case is being prosecuted by Assistant District Attorneys Jessica Lightstone and Blythe Miller of the Financial Crimes Bureau, and the investigation was conducted by Senior Detective Investigator George Bean of the Financial Crimes Bureau and Investigative Auditors Christine Triolo and Eric Robinson.
The civil forfeiture litigation before Acting Supreme Court Justice Joseph Farneti is being handled by Assistant District Attorney Joseph J. McCarthy Jr. of the Asset Forfeiture Bureau, and the civil forfeiture investigation was led by Detective Investigator Paul Rauseo and District Attorney Investigator Mike Dunn of the Asset Forfeiture Bureau.
Criminal complaints and indictments are merely accusatory instruments. Defendants are presumed innocent until proven guilty. No one is above the law.
