Fraudster NYU director embezzled $3.5million in grants and splashed the cash on herself

A former New York University finance director has been suspended from her new job at Yale, after being charged Monday with embezzling millions in funds for the Manhattan school on personal expenses, including an $80,000 pool.

Over the course of six years, prosecutors say Cindy Tappe, 57, used her top position at the university to funnel more than $3.4 million in grants intended to finance minority- and women-owned businesses into shell companies she created.

Tappe, who left her job as finance director in 2018 when her alleged scheme was exposed, has since he began working as an operations manager at the Yale School of Medicine but was suspended Monday after staff learned of the charges.

Appearing in court in handcuffs, Tappe pleaded not guilty to using the stolen money to finance what prosecutors called a “luxurious lifestyle,” complete with at least $660,000 in renovations to her sprawling Connecticut home and aforementioned pool.

Billed as “excelling in comprehensive knowledge of finance and grants and has effective team-building and leadership skills” on Yale’s website, Tappe faces six counts of money laundering, grand theft and fraud for the alleged six-year scheme. , and was released Monday without bail.

Tappe allegedly used money from the $3.4 million grant earmarked for women- and minority-owned businesses to fund what prosecutors called a “luxurious lifestyle,” including an $80,000 fund.

A spokesperson for Yale, located in New Haven, not far from Tappe’s two-acre multi-million dollar estate in Westport, confirmed Tuesday that “Ms. Tappe has been placed on leave, but did not specify whether or not that leave was paid for.”

The elite school, which employed Tappe as operations manager in 2018 despite New York University staff at the time discovering her alleged misdeeds, insisted in a statement Tuesday that Tappe was vetted before being hired.

“All potential employees are subject to background and reference checks,” spokeswoman Karen Peat wrote.

After her indictment Monday, NYU spokesman John Beckman said the school, which reported Tappes’ plan to police upon discovering it in 2018, was “deeply disappointed that an employee abused the trust we place in she”.

Beckman said the school discovered “suspicious activity” from its senior staff member in 2018, prompting Tappe to submit her resignation after being confronted.

“We are pleased that we were able to help stop this misdirection of taxpayer money,” Beckman said Monday.

Tappe’s Westport, Connecticut home with the pool he paid for with stolen money, prosecutors say

In Manhattan district court on Monday, New York State Comptroller Thomas DiNapoli claimed Tappe stole the money to “finance a lavish lifestyle,” including extensive renovations to his Westport home, located not far from his current employer, Yale.

According to Bragg’s office, Tappe funneled the money, from $23 million in grants awarded to an NYU center where she worked, using two companies she built, as well as writing bogus invoices for three subcontractors, who received a part for no-show without doing the work.

In Manhattan district court on Monday, New York State Comptroller Thomas DiNapoli claimed that Tappe stole the money to “finance a lavish lifestyle” with both DiNapoli and Alvin Bragg, the district attorney for Manhattan, alleging that she concocted her plan over six years, from 2012 to 2018, with an elaborate system of shell companies to steal the cash.

According to Bragg’s office, Tappe funneled the money — from $23 million in grants awarded to an NYU center where she worked — using two companies she built, as well as writing bogus invoices for three subcontractors, who received compensation. three to six percent. cut for no-show jobs without doing the job.

The cash would be spent on monitoring two state programs: one to help school districts improve outcomes for English learners and another to ensure special education students receive fair treatment.

The cash would be spent on monitoring two state programs: one to help school districts improve outcomes for English learners and another to ensure special education students receive fair treatment.

Tappe took the $3.5 million in grant money and instead of distributing it, she sent it to the small group of subcontractors, who took a small portion and then sent approximately $3.4 million to shell companies she created.

Under the terms of the grants, a certain percentage had to go to women- and minority-owned businesses, which would then administer those programs.

Tappe took the $3.5 million and instead of distributing it, she sent it to the small group of subcontractors, who took a small portion and then sent approximately $3.4 million to shell companies she created.

Using those shell companies, High Galaxy and PCM Group, he then spent the money, including hundreds of thousands of dollars that went towards his own personal expenses.

A program director found out about the scheme in 2018 and confronted her.

Manhattan district attorney Alvin Bragg said Monday that Tappe’s actions “negatively impacted minority and women-owned business enterprises in our city by denying them the opportunity to compete fairly.”

“Our multilingual students and students with disabilities deserve world-class services, and these funds should have gone directly to their schools,” Bragg said.

“Instead, we allege, funds earmarked for student programs were used solely for personal gain by a New York University CFO, who renovated a Connecticut home and bought a swimming pool with the money.

“This $3.5 million fraud also negatively impacted minority- and women-owned business enterprises in our city by denying them the opportunity to compete fairly and secure financing.”

An NYU spokesperson said they were “deeply disappointed” by Tappe’s actions. Police were told about “suspicious activity” from his staff in 2018, but Tappe was still hired by

She emailed principals and told them that the school had “developed good working relationships” with the companies, but she was ultimately fired and the case was referred to DiNapoli’s office.

Meanwhile, NYU maintains that they were and are “deeply disappointed” that a staff member could act in such a manner.

The school added that when confronted, Tappe misled school officials about her relationship with subcontractors and shell companies, before ultimately leaving the school.

The missing funds were then reported to the Manhattan district attorney’s office, which launched a more than three-year investigation that culminated in Tappe’s arrest Monday.

The investigation, prosecutors saddened, determined that the fraud began in 2012 when Tappe was promoted to director of finance and administration at New York University’s Metropolitan Center for Research on Equity and School Transformation, and persisted until officials schoolchildren confronted her in September 2018.

When contacted Tuesday, Tappe’s attorney, Deborah Colson, declined to comment on her client’s case. If convicted, Tappe could face more than 25 years in state prison.