A Former LI School Official Was Sentenced For Stealing $8.4M

WEST ISLIP, NY –A former Long Island private school official who stole over $8.4 million from the school over 11 years was sentenced to 8 1/3 to 25 years in prison today, according to Suffolk County District Attorney Ray Tierney.

David Ostrove, a former chief financial and technology officer for the Schechter School of Long Island in Williston Park, was found guilty by a jury March 12 of first-degree grand larceny and first-degree money laundering, both Class B felonies, Tierney said.

Today, Justice John Collins sentenced Ostrove 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 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.”

With the money he stole, Ostrove bought and renovated five beach houses on Fire Island between 2018 and 2021; the homes were purchased under five different shell corporations, which helped to shield him from being identified as the owner, prosecutors said. The companies were incorporated with the New York State Department of State within days of the homes’ purchases.

Ostrove received about $600,000 in rental income on them, the DA said.

He also bought a 1965 Mustang, a 2021 Lincoln Navigator and two Mercedes Benz vehicles, which he registered to his wife and daughter, prosecutors saiad.

In addition, Ostrove used the funds for his daughter's college tuition; home equity payments for his West Islip residence; travel expenses; the purchase of expensive sports memorabilia and collectible coins, which he would then auction off for profit; purchases at high-end clothing and jewelry stores; limousine trips; and more than $1 million in cash withdrawals, Tierney said.

According to officials, the vehicles and real estate were seized pursuant to a court order obtained by the DA's office in a separate civil forfeiture proceeding. That civil case is still pending and will resume soon.

When Ostrove was found guilty in March, his corporation, BND Street Investors, Inc., was found guilty of first-degree money laundering, Tierney said.. 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, the DA said.

Ostrove was represented by Ralph Franco, Esq. Franco was not immediately available for comment.