CRIME
Former NYU Finance Director Pleads Guilty In $3.5 Million Fraud That Paid For Her New Pool
New York University
A former finance director at New York University was convicted on Monday after pleading guilty to a $3.5 million fraud scheme that funded her home renovations and swimming pool, the Manhattan District Attorney’s Office announced.
Cindy Tappe, 57, used her position as Director of Finance and Administration at the Manhattan school’s Metropolitan Center for Research on Equity and Transformation of Schools over the course of six years to divert approximately $3.5 million intended for minority and women owned businesses.
Between 2011 and 2018, the New York State Education Department awarded NYU $23 million for the Metro Center to administer two state programs meant for English language learners and special education. Under the terms of the grants, a certain percentage of funds had to be administered to minority and women owned business (MWBE) enterprises.
Tappe arranged for three certified MWBE subcontractors to receive the overwhelming majority of MWBE payments amounting to $3.527 million.
But the companies never performed work on the contracts, instead submitting fictitious invoices drafted by Tappe and pasted on their letterhead. The companies served as pass-throughs, taking between 3% and 6% of the invoice amounts and sending the remaining $3.352 million to two fictitious shell companies created by Tappe.
The shell companies used most of the funds to pay legitimate grant-related expenses and to pay NYU employees, without NYU oversight. But at least $660,000 was spent by Tappe on personal expenses, including renovations to her Connecticut home and an $80,000 swimming pool.
“Cindy Tappe took advantage of her position as the NYU Director of Finance and Administration by diverting funds that were intended to benefit students for her own personal gain. Her fraudulent actions not only threatened to affect the quality of education for students with disabilities and multilingual students, but denied our citys minority and women owned business enterprises a chance to fairly compete for funding,” District Attorney Alvin Bragg said in a statement.
“Cindy Tappe shamelessly used her high-ranking position at NYU to steal more than $660,000 in state funds,” New York State Comptroller Thomas P. DiNapoli said. “Her actions cheated MWBEs out of critical funding opportunities and deprived student programs of key resources meant to aid children with special needs and young English Language learners. I thank District Attorney Bragg for his partnership in uncovering her wrongdoing and for holding her accountable.”
Tappe pleaded guilty to one count of grand larceny in the second degree. Under the terms of the plea agreement, Tappe will be required to provide full restitution in the amount of $663,209.07 in advance of her sentencing on April 16. She will also be sentenced to five years probation and will be required to waive her right to appeal.
TMX contributed to this article.
