Federal officials arrested Seth Andrew, founder of the Democracy Prep charter chain, accusing him of taking money from the schools’ bank account to lower his mortgage rate on a new home. Andrew launched Democracy Prep in 2005; he left in 2013 to work the Obama Department of Education but retained financial ties with the charter chain. He severed his ties with the chain in January 2017.
Federal officials say he withdrew more than $200,000 from one of the schools’ accounts in 2019.
He is accused of wire fraud, money laundering, and making false claims to a bank.
CNBC reported:
Andrew, 42, was busted in New York City, where he and his wife, CBS News anchor Lana Zak, have a residence valued at more than $2 million.
The founder of Democracy Prep Public Schools is accused of using more than half of the allegedly stolen money from that network to maintain a bank account CONTINUE READING: Seth Andrew, Founder of Democracy Prep Charter Chain, Arrested by Federal Officials | Diane Ravitch's blog