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Federal authorities arrested former Obama White House advisor Seth Andrew on Tuesday for allegedly stealing hundreds of thousands of dollars from a charter school network he founded.
The Department of Justice (DOJ) announced Andrews’s arrest in a Tuesday press release. Andrew is facing charges of wire fraud, money laundering, and making false statements to a financial institution related to a scheme stealing $218,005 from his network of charter schools.
“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,” Manhattan U.S. Attorney Audrey Strauss said in a statement. “Andrew is not only alleged to have stolen the schools’ money but also to have used the stolen funds to obtain a savings on a mortgage for a multimillion-dollar Manhattan apartment. Thanks to the FBI’s diligent work, Andrew now faces federal charges for his alleged scheme.”
FBI Assistant Director William F. Sweeney Jr. added: “Locking into the lowest interest rate when applying for a loan is certainly the objective of every home buyer, but when you don’t have the necessary funds to put down, and you steal the money from your former employer to make up the difference, saving money in interest is likely to be the least of your concerns. We allege today that Andrew did just that, and since the employer he stole from was a charter school organization, the money he took belonged to an institution serving school-aged children. Today Andrew himself is learning one of life’s most basic lessons – what doesn’t belong to you is not yours for the taking.”
Under former President Barack Obama, Andrew served as a top adviser to the secretary of Education, and later as a senior advisor in the White House Office of Educational Technology. The former White House advisor is married to CBS News anchor Lana Zak.
Andew founded Democracy Prep Public Schools, a network of charter schools with branches in several states, in 2005. He left the network in 2013, according to an email sent to staff in the wake of Andrew’s arrest and obtained by CNBC.
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