(NEW YORK) The founder of New York-based Democracy Prep charter school was arrested Tuesday on federal charges of stealing over $218,000 from the school.
According to ABC 7 NY, Seth Andrew, who founded Democracy Prep in 2005, allegedly embezzled the funds from an escrow account and used the money to secure a lower interest mortgage rate for a Manhattan apartment.
Andrew left Democracy Prep in 2013 and worked as a senior education advisor at the White House in the Office of Educational Technology.
The school reportedly continued to pay for his health care until November 2016, said a source from Democracy Prep.
However, Andrew's name remained on the escrow accounts, and prosecutors allege that he withdrew the money in 2019.
The New York Post reports that Andrew and his wife purchased the Manhattan apartment for over $2 million.
In a statement, Democracy Prep said the "network's finances remain strong, and at no time did any of the activity by Seth Andrew have any adverse effect on our scholars of the functioning of our schools," per ABC 7 NY.
Andrew faces charges of wire fraud, money laundering and making false statements to a bank.
He was released on a $500,000 bond at an initial court appearance in Manhattan federal court on Tuesday afternoon and the New York Post reports that he did not enter a plea at the hearing.