MINEOLA, NY – David Ostrove, a former Chief Financial and Technology Officer of the Schechter School of Long Island, has been found guilty of grand larceny and money laundering. Ostrove, 52, was convicted by a jury for stealing over $8.4 million from the private school during his 11-year tenure.
Suffolk County District Attorney Raymond A. Tierney expressed his disappointment in Ostrove’s actions, stating, “While David Ostrove was entrusted to manage this money to benefit the children of the Schechter School, he was secretly lining his own pockets.” Tierney commended the jury for holding Ostrove accountable for his actions and ensuring justice for the hardworking parents of the school’s students.
The trial revealed that between March 2014 and April 2022, Ostrove transferred over $8 million of school funds into his personal accounts. He used the stolen money to finance a lavish lifestyle, purchasing vehicles such as a 1965 Mustang, a Lincoln Aviator, and a Mercedes Benz. Ostrove also acquired five beach houses on Fire Island, using shell corporations to conceal his ownership.
Additionally, Ostrove spent the stolen funds on renovations for the beach homes, collecting over $600,000 in rental income. The vehicles and properties have been seized by the Suffolk County District Attorney’s Office through a separate civil forfeiture proceeding.
Further investigation revealed that Ostrove used the stolen money for various personal expenses, including his daughter’s college tuition, home equity loan payments, travel expenses, and the purchase of sports and political memorabilia as well as collectible coins. He also made purchases at high-end clothing and jewelry stores, took limousine trips, and withdrew over $1 million in cash.
On March 12, 2024, Ostrove was convicted of Grand Larceny in the First Degree and Money Laundering in the First Degree, both Class B felonies. His corporation, BND Street Investors, Inc., was also found guilty of Money Laundering in the First Degree, and his other corporations faced charges of Money Laundering in the Second Degree, a Class C felony.
Ostrove is scheduled for sentencing on April 17, 2024, and faces a maximum of 25 years in prison. He is being represented by Ralph Franco, Esq.
The prosecution of this case is led by Assistant District Attorneys Jessica Lightstone and Blythe Miller of the Financial Crimes Bureau. The investigation was conducted by Senior Detective Investigator George Bean, Investigative Auditors Christine Triolo and Eric Robinson, Detective Investigator Paul Rauseo, and District Attorney Investigator Mike Dunn. The civil forfeiture litigation is being handled by Assistant District Attorney Joseph J. McCarthy Jr. of the Asset Forfeiture Bureau, under the supervision of Acting Supreme Court Justice Joseph Farneti.
