page contents Former Obama White House adviser pleads guilty to scamming school he founded – The News Headline

Former Obama White House adviser pleads guilty to scamming school he founded

A former Obama White Space adviser pleaded in charge Friday to twine fraud in terms of a scheme to scouse borrow greater than $218,000 from a constitution faculty community he based, prosecutors stated.

Seth Andrew, 42, admitted to the rip-off in federal courtroom in Big apple, the place he have been charged with swindling cash from Democracy Prep Public Colleges. He’s scheduled to be sentenced on April 14. The utmost sentence for twine fraud is 20 years in jail, prosecutors stated.

Andrew “admitted lately to devising a scheme to scouse borrow from the exact same colleges he helped create. Andrew now faces time in federal jail for abusing his place and robbing the ones he promised to assist,” stated Damian Williams, the U.S. Lawyer for the Southern District of New York.

Seth Andrew seems on a C-Span program relating to constitution colleges in growing nations, on July five, 2017.C-Span

Andrew helped create the Democracy Prep community in New York Town in 2005, and labored for the group till 2013, when took a task with the U.S. Division of Training. He used to be later named a senior adviser within the Place of job of Tutorial Generation on the White Space, in step with courtroom filings. He left the White Space in November of 2016 and formally severed ties with Democracy Prep in early 2017.

Prosecutors stated he enacted his scheme to take cash from the community in 2019, the usage of 3 faculty escrow accounts that he used to be at first a signatory for. He closed out the accounts on separate dates and moved the price range into other accounts, pocketing pastime on them till he moved the cash right into a checking account within the identify of a civic group he managed.

On the time of his arrest in April of closing 12 months, prosecutors stated he used that checking account “to procure a financial savings on a loan for a multimillion-dollar Big apple condo.”

“Locking into the bottom rate of interest when making use of for a mortgage is without a doubt the target of each house purchaser, however whilst you don’t have the vital price range to position down, and also you scouse borrow the cash out of your former employer to make up the variation, saving cash in pastime might be the least of your issues,” FBI Assistant Director William F. Sweeney Jr. stated on the time.

Leave a Reply

Your email address will not be published. Required fields are marked *