Long Island Man Stole $8.4 Million From Private School: DA

WEST ISLIP, NY — A West Islip man has been indicted after he stole more at least $8.4 million from a private school over the course of 11 years, Suffolk County District Attorney Raymond A. Tierney announced on Monday.

David Ostrove, 51, was charged with first-degree grand larceny and first-degree money laundering — both felonies — after officials said he stole money from Schechter School of Long Island, located at 6 Cross St in Williston Park, according to Tierney.

Throughout his 11-year tenure with the school, he served as chief financial and technology officer and director of operations, according to the Honorable John B. Collins.

“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.”

According to an 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, prosecutors said.

In an effort to reportedly 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, officials said.

Ostrove also purchased four vehicles including a 1965 Mustang, a 2021 Lincoln Navigator
and two Mercedes Benz vehicles, which are registered to his wife and daughter, the DA said.

In addition, he 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, prosecutors said.

The companies were incorporated with the New York State Department of State within days of the homes’ purchases, Tierney said.

Ostrove further used the criminal proceeds to pay over $1.4 million dollars to make renovations on the homes and received about $600,000 in rental income on them, officials said.

In addition to buying homes and cars, Ostrove used the funds for his daughter's college tuition,
home equity payments for his West Islip residence, travel expenses, and the purchase of
expensive sports memorabilia and collectible coins, which he would then auction off for profit, officials said.

The funds were also used for purchases at high-end clothing and jewelry stores, limousine trips
and more than $1 million in cash withdrawals, Tierney said.

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, Tierney said.

The BND Street Investors, Inc. company has been indicted on one count of first-degree money laundering 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 second-degree money laundering, a felony, Tierney said.

If convicted, Ostrove faces a minimum sentence of one to three years in prison and a maximum sentence of eight years and four months to 25 years in prison, Tierney said.

Ostrove was placed on $500,000 cash or $2 million bond or $2 million partially secured bond.

He is being represented by John LoTurco. His next court date is Aug. 1.