Seth Andrew, who served as a senior adviser in the Office of Educational Technology during the Obama administration, confessed to wire fraud before the U.S. District Judge John Cronan in Manhattan federal court, officials announced Friday. He took the money to get a lower interest rate on a mortgage for a multimillion-dollar apartment in Manhattan, prosecutors said last April upon his detention.
"Seth Andrew, a former White House advisor, admitted today to devising a scheme to steal from the very same schools he helped create," U.S. Attorney Damian Williams said in a statement. "Andrew now faces time in federal prison for abusing his position and robbing those he promised to help."
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In 2005, Andrew, 42, helped create the Democracy Prep Public Schools, a charter school system in New York and other states, according to different outlets. He quit his position in the charter school system for a position in the Department of Education in 2013. He left his job in 2016 and "officially severed his relationship" with the school system in 2017, prosecutors said.
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The school system was instructed to keep escrow accounts with funding to be used if the school system dissolved, the Department of Justice said. Andrew gained access to these accounts and delivered money to his private bank accounts, according to prosecutors.
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The transfers happened several different times in 2019, about two years after he left the school system, according to the reports. The funds in the escrow accounts were not allowed to be transferred by Andrew or anyone without the appropriate approval, according to prosecutors.
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Andrew agreed to pay restitution to the school system, the DOJ said.
ANDREW, 42, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of money laundering, which carries a maximum sentence of 20 years in prison, and one count of making a false statement to a bank, which carries a maximum sentence of 30 years in prison. The maximum possible penalties, in this case, are specified by Congress and are supplied here for informative purposes only, as any sentencing of the defendant will be concluded by the judge.
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Ms. Strauss touted the excellent investigative work of the FBI. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Ryan B. Finkel is in charge of the prosecution.
The charges in the Complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
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