Fraudster finance boss is sentenced to eight-and-a-half years in prison for stealing $8MILLION from $26,000-a-year Long Island private school to buy five waterfront mansions, 1965 Ford Mustang and jewelry

The chief financial officer of a prestigious Long Island private school has been sentenced to eight to 25 years in prison after being found guilty of stealing more than $8 million to buy a portfolio of homes, classic cars and jewelry.

Fraudster David Ostrove, 52, was CFO at the $26,000-a-year Schechter School of Long Island for a decade.

While in such a trusted position, he was able to siphon millions of dollars from the school’s coffers through shell companies during that time.

During his sentencing, Ostrove was told he must pay back all the money he stole.

Among his extravagances, Ostrove bought five lavish properties in Ocean Beach on New York’s Fire Island, a 1965 Ford Mustang and collections of sports memorabilia.

He also used some of the stolen money to send his daughter to college and buy political and sports memorabilia, along with designer clothing and jewelry. He also went on some flashy vacations.

Ostrove used the money to buy and rent houses on Fire Island, receiving more than $600,000 in profits

Following his conviction, Suffolk District Attorney Raymond Tierney said: “While David Ostrove was entrusted to manage this money for the benefit of the children of the Schechter School, he secretly lined his own pockets.

“The jury here concluded that the defendant’s lavish lifestyle was funded by the tuition of the hard-working parents of the Schechter School students and fortunately the jury held him responsible,” Tierney said.

Prosecutors said he started the fraud scheme in 2014, using five different operations to siphon off millions.

According to a $35 million lawsuit the school filed against Ostrove in January, he allegedly concealed the money by setting up a PayPal account in the school’s name and depositing the stolen money into it.

And in 2018, he also created a gift card program through which he raised money for the Schechter School, but also stole $1.58 million from the program using one of his shell companies.

The $8 million scam also included fraudulent expense reports in which he collected approximately $800,000, the lawsuit said.

“The jury here concluded that the defendant’s lavish lifestyle was funded by the tuition of the hard-working parents of the Schechter School students, and fortunately the jury held him responsible,” District Attorney Tierney said at his sentencing last month.

Much of the ill-gotten gains went to Ostrove’s portfolio of five Fire Island properties, including two valued at $1.3 million and $1.8 million, within minutes of each other.

One of Ostrove’s Fire Island properties, valued at $1.8 million

Ostrove also owned this $1.2 million property just minutes from his $1.8 million home

The scammer also stashed the stolen money in sports memorabilia and a 1965 Mustang (seen in a stock photo)

Ostrove was director of finance at the $26,000-a-year Schechter School of Long Island

The financial director receives a prison sentence of eight to 25 years and must repay the stolen money

The chief financial officer had used $1.4 million of his stolen money to upgrade the homes, but is said to have made more than $600,000 by renting out his Fire Island properties.

Ostrove’s releases also focused on rare collections of sports and political memorabilia, and cars, including a classic 1965 Ford Mustang.

His car collection also included a Lincoln Aviator SUV and a Mercedes Benz.

Ostrove also allegedly used some of the stolen money to pay for his own daughter’s education.

“When he was flooded with other people’s money, he was a pompous guy,” attorney Steven Bertolino said. Fox Business.

“When he bought the Fire Island property, I ended up throwing him out of my office because he was so stupid and offensive. It was COVID, and some of the people involved swore he was such a great guy. Of course I said it wasn’t, and it’s nice to be right,” Bertolino said.

Ahead of his sentencing, the Schecter School told DailyMail.com that the mass fraud was “chilling” and, if convicted, would have been “guilty of something other than the theft of cash: the destruction of trust.”

The school added, “Although dollars have allegedly been embezzled, the future of the Schechter School cannot be stolen.

“We will emerge from this experience stronger and wiser, and with a cautionary tale for every institution that today’s online financial technology can be the burglar’s weapon of choice.”