Founder of Democracy Prep charter schools accused of $200K theft
A founder of the Democracy Prep Public Schools, which has campuses across the U.S., including one in Las Vegas, is accused of stealing more than $200,000 from the charter school network, the Justice Department said.
Seth Andrew, 42, a former White House adviser for the Obama administration, was arrested Tuesday in New York City and has been charged with wire fraud, money laundering and making false statements to a financial institution, according to a news release from the U.S. attorney’s office for the Southern District of New York.
In 2017, Democracy Prep took over the former Agassi Prep campus in Las Vegas’ Historic Westside, bringing with it changes to campus culture that were initially unpopular with parents.
The school focuses on civics, requiring volunteer service and capstone projects that address social issues from its high school seniors.
Andrew stole $218,005 from the Democracy Prep Public School network and used the money to “obtain a savings on a mortgage for a multimillion-dollar Manhattan apartment,” U.S. Attorney Audrey Strauss was quoted as saying in the release.
Andrew helped create the public charter school network, then based in New York City, in 2005. Eight years later, he became a senior adviser in the Office of Educational Technology for former President Barack Obama. He left the White House in 2016, and “severed his relationship” with the charter schools in January 2017, the release said.
In 2019, Andrew withdrew money from three accounts that were “reserved in case the school dissolved,” the release said. Prosecutors said he then used some of the money to obtain a lower interest rate on his mortgage.
If convicted, Andrew faces a maximum sentence of 20 years for wire fraud, 20 years for money laundering and 30 years for making a false statement to a bank, the release said.
Contact Katelyn Newberg at knewberg@reviewjournal.com or 702-383-0240. Follow @k_newberg on Twitter. Review-Journal staff writer Aleksandra Appleton contributed to this report.