A former adviser to the Obama White Home was arrested on allegations of stealing from a constitution college he based, based on the Department of Justice.
Federal prosecutors introduced on Tuesday that Seth Andrew had been arrested on expenses of wire fraud, cash laundering, and making false statements to a financial institution in connection to $218,005 allegedly stolen from Democracy Prep Public Schools.
Defence legal professional Michael Yaeger mentioned Mr Andrew would plead not responsible and was reviewing the federal government’s case, based on CNBC.
Mr Andrew, 42, served within the Workplace of Academic Know-how through the second time period of the Obama administration from 2013 to 2016, based on the Justice Division.
Prosecutors additionally allege that Mr Andrew, who based the constitution college community in 2005, used the stolen funds to acquire financial savings on a mortgage for a $2m Manhattan condominium in 2019.
The felony grievance alleges that between March and August 2019, Mr Andrew used his previous affiliation with Democracy Prep to entry escrow accounts he beforehand established for colleges within the community.
FBI assistant director William Sweeny Jr alleged in an announcement that Mr Andrew used the funds to lock in a low-interest fee when making use of for a mortgage.
“We allege in the present day that Andrew did simply that, and because the employer he stole from was a constitution college group, the cash he took belonged to an establishment serving school-aged kids,” Mr Sweeny mentioned.
Democracy Prep CEO Natasha Trivers mentioned in an e-mail to high school households that Mr Andrews left the community in 2013 and a collection of “monetary safeguards” applied in 2019 led to the invention of unauthorised withdrawals.
“His alleged actions are a profound betrayal of all that we stand for and to you and your kids, the students and households that we serve,” Ms Trivers’ e-mail mentioned, based on CNN.
“To be clear, at no time did the alleged crimes pose any threat to our college students, workers or operations in any means.”
At a US District Courtroom look in Manhattan, Mr Andrew was launched on a private recognizance bond to look in court docket on 27 Could.