Ex-Obama Official Charged With Stealing Over $218k from Schools
Seth Andrew faces charges of money laundering and wire fraud
A former official for the Obama administration has been charged with stealing more than $218,000 from charter schools, according to reports.
The U.S. Attorney for the Southern District of New York announced that Seth Andrew faces charges of money laundering, false statements to a financial institution, and wire fraud.
The Department of Justice alleges Andrew founded a network of charter schools based in New York City in 2005.
He then left his job as superintendent of the charter school network to work for President Barack Obama's Department of Education in 2013.
Andrew later worked as a senior adviser in the Obama White House's Office of Educational Technology.
In 2019, Andrew closed two escrow accounts, both of which were only to be used in the event that the charter schools he founded were to dissolve, authorities allege.
He then allegedly deposited the funds into two new bank accounts.
One account was used to get lower interest rate promotion for Andrew's luxury Manhattan apartment.
U.S. Attorney Audrey Strauss said:
"As alleged, Seth Andrew abused his position as a founder of a charter school network to steal from the very same schools he helped create."
FBI Assistant Director William Sweeney said:
"Today, Andrew himself is learning one of life’s most basic lessons."
"What doesn't belong to you is not yours for the taking."
Andrews now facing:
- One count of wire fraud
- One count of money laundering
- One count of making false statements to a financial institution
Each of the wire fraud and money laundering counts carries a hefty 20 years sentence.
Also, making false statements to a financial institution carry a maximum sentence of 30 years.