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David Ostrove, age 52, of West Islip, was sentenced to between 8 ⅓ and 25 years in prison in Suffolk County Court on Wednesday, April 17, following his conviction for grand larceny and money laundering.
Prosecutors said Ostrove transferred over $8.4 million from Williston Park’s Schechter School of Long Island into his own personal accounts between March 2014 and April 2022.
During that time, he served as the school’s chief financial and technology office.
An investigation found that he later used the stolen money to fund a lavish lifestyle that included buying high-end cars and five beach houses on Fire Island. The homes were purchased using shell corporations in order to conceal Ostrove’s status as the owner, prosecutors said.
His fraudulent spending didn’t end there; investigators said $1.4 million went toward renovations to the beach houses, from which he then collected over $600,000 in rental income.
He also used the illegal proceeds to pay his daughter’s college tuition, to make payments on his home equity loan for his West Islip residence, and to buy expensive sports and political memorabilia, and collectible coins he planned to auction off.
Investigators determined that he also made more than $1 million in cash withdrawals and bought high-end clothing and jewelry, and limousine trips.
A Suffolk County jury found Ostrove guilty of first-degree grand larceny and money laundering, both felonies, in March 2024.
In addition to his prison time, he was ordered to pay the full $8.4 million in restitution. Each of his corporations was fined $500,000.
Suffolk County District Attorney Raymond Tierney said the lengthy sentence sends a clear message that his office takes white collar crime “extremely seriously.”
“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.”
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