Former Obama adviser accused of stealing from charter schools
NEW YORK - A former Obama White House adviser is accused of stealing $218,005 from New York City charter schools he founded.
Federal prosecutors announced the charges against Seth Andrew on Tuesday. He is accused of wire fraud, money laundering, and making false statements to a financial institution.
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The U.S. Attorney claims Andrew used the money to help obtain a mortgage for the purchase of a multimillion-dollar Manhattan apartment.
Andrew, 42, helped create School Network-1 in 2005, a series of public charter schools then based in New York City.
In 2013, he accepted a job in the United States Department of Education and later became a senior adviser in the Office of Educational Technology at the White House.
While employed at the Department of Education, and at the White House, Andrew was paid by School Network-1, according to a federal complaint.
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In November 2016, Andrew left his role in the White House and, shortly thereafter, officially severed his relationship with School Network-1, prosecutors say.
They claim he closed escrow accounts holding money that was required in the case the schools dissolved. He then opened new accounts to use the money himself.
Andrew faces decades in prison if convicted of all of the charges. It was unclear if he had a lawyer who could speak on his behalf.