A West Islip man was sentenced to 8 1/3 to 25 years in prison after a jury found him guilty in March of grand larceny and money laundering, for stealing $8.4 million from a private school in Williston Park.
David Ostrove worked at the Schechter School of Long Island throughout his eleven-year tenure while serving as its Chief Financial and Technology Officer. Between March 2014 and April 2022, Ostrove used the Schechter School’s accounts to transfer more than $8 million of school funds into his own personal accounts. With the stolen funds, He 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. He further used the illegal proceeds to pay for more than $1.4 million 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 first-degree grand larceny and first-degree money laundering, both Class B felonies, after a jury trial heard before Supreme Court Judge John B. Collins. Additionally, Ostrove’s corporation, BND Street Investors, Inc., was found guilty of first-degree money laundering, 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 second-degree money laundering, a Class C felony.
On April 17, 2024, Justice Collins sentenced Ostrove to 8 1/3 to 25 years in prison and ordered him to pay for the full $8.4 million in restitution. In addition, each of Ostrove’s corporations were fined $500,000.
“This sentence sends a clear message that we take white collar crime extremely seriously here in Suffolk County,” said Suffolk County District Attorney Raymond Tierney. “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.”