A former Obama White Home advisor was arrested over allegations he stole from constitution colleges he created.
Prosecutors say Seth Andrew laundered cash to get a reduced rate of interest for a Manhattan mortgage.
Andrew labored within the Workplace of Academic Expertise on the White Home till 2016.
A former senior advisor within the Obama White Home allegedly stole greater than $200,000 from a constitution faculty community he based and tried to launder the stolen cash with a purpose to get a decrease rate of interest on a Manhattan condominium mortgage, according to the Department of Justice.
Seth Andrew, 42, who labored as a senior advisor within the Workplace of Academic Expertise on the White Home below Obama, was arrested and charged Tuesday with wire fraud, cash laundering, and making false statements to a financial institution.
Andrew based Democracy Prep Public Colleges, a system of greater than 20 New York Metropolis-based public constitution colleges in 2005, in keeping with federal prosecutors. He left the community in 2013 to take a job on the US Division of Training earlier than heading to the White Home, the place he stayed till November 2016.
In a criminal complaint unsealed Tuesday, prosecutors allege that between March and August 2019 Andrew, after chopping ties with Democracy Prep Public Colleges in January 2017, used his former connection to the colleges to steal $218,005 of the community’s reserve cash by giving his school-affiliated e mail to a financial institution worker in an try to persuade them he was nonetheless related to Democracy Prep.
Prosecutors say Andrew drew funds from escrow accounts he had beforehand arrange for particular person colleges inside the constitution faculty community. He then allegedly used that cash to open a enterprise account within the title of a Democracy Prep faculty at a financial institution.
In response to the criticism, Andrew “tried to hide… the supply of the stolen funds…and make it seem that the stolen funds belonged to a non-profit group that Andrew based, and at present seems to manage.”
In a Tuesday e mail to Democracy Prep mother and father obtained by CNN, CEO Natasha Trivers mentioned the constitution faculty community alerted authorities as quickly because it discovered concerning the unauthorized withdrawals.
“Seth left our community in 2013. His alleged actions are a profound betrayal of all that we stand for and to you and your youngsters, the students and households that we serve,” Trivers’ e mail reportedly mentioned. “To be clear, at no time did the alleged crimes pose any danger to our college students, employees or operations in any means.”
The alleged fraud, cash laundering, and “misrepresentations” had been all an try by Andrew to acquire financial savings on a mortgage for a multimillion-dollar Manhattan condominium, prosecutors mentioned. With out the stolen Democracy Prep funds, prosecutors say Andrew wouldn’t have been in a position to take full benefit of the financial institution’s discounted rate of interest promotion.
At a Tuesday look in court docket, a choose ordered Andrew launched on a $500,000 private recognizance bond according to CNBC.
An legal professional for Andrew informed the outlet he’ll plead not responsible.
Learn the unique article on Business Insider