(WNY News Now) – NYC – New York State Comptroller Thomas DiNapoli and Manhattan District Attorney Alvin L. Bragg Jr. jointly announced the guilty plea of a 57-year-old woman for orchestrating a six-year, $3.5 million fraud scheme while serving as the Director of Finance and Administration for NYU’s Metropolitan Center. The scheme diverted funds intended for minority and women-owned businesses, impacting programs for students with special needs and English language learners.
Cindy Tappe, the former Director of Finance and Administration for NYU’s Metropolitan Center, has pleaded guilty to one count of Grand Larceny in the Second Degree for her role in a $3.5 million fraud scheme spanning 2011 to 2018. Tappe diverted funds earmarked for minority and women-owned businesses (MWBE) in connection to two New York State Education Department programs administered by NYU.
Between 2011 and 2018, NYU received $23 million for the administration of the Regional Bilingual Education Resource Network (RBE-RN) and the Technical Assistance Center on Disproportionality (TAC-D). These programs aimed to improve results for English language learners and address disproportionality in special education, requiring a percentage of subcontractors to be MWBE-certified.
Tappe, in her role as Director of Finance and Administration, arranged for three certified MWBE subcontractors to receive the majority of MWBE payments, totaling approximately $3.527 million. These payments were justified through fictitious invoices created by Tappe and submitted by the companies. However, investigations revealed that none of the companies performed the required work, functioning instead as pass-through entities.
The funds were funneled to two fictitious shell companies, High Galaxy Inc. and PCM Group Inc., both created by Tappe. These shell companies received $3.352 million, and Tappe embezzled over $660,000 for personal use. The misappropriated funds were utilized for home renovations, including an $80,000 swimming pool, and personal living expenses.
Under the terms of her guilty plea, Tappe will receive a five-year probation sentence, sign a waiver of the right to appeal, and provide full restitution of $663,209.07 before her sentencing on April 16, 2024.
Both Comptroller DiNapoli and District Attorney Bragg expressed their commitment to holding Tappe accountable for her actions, emphasizing the impact on MWBEs and student programs. The investigation, conducted by Comptroller DiNapoli’s Division of Investigations, was subsequently referred to the Manhattan District Attorney’s Office for prosecution.
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