(WNY News Now) – New York – In a case overshadowed by campus protests, New York University (NYU) finds itself under scrutiny once more as former finance director Cindy Tappe faces the consequences of her actions. Tappe, 59, has paid restitution totaling $663,209.07 after pleading guilty to grand larceny, following her involvement in a fraudulent scheme amounting to $3.5 million over six years. State Comptroller Thomas DiNapoli and Manhattan District Attorney Alvin L. Bragg Jr. jointly announced the resolution of this case.
Tappe’s scheme, described by DiNapoli as supporting her “lavish lifestyle at the expense of children with special needs and young English Language learners,” diverted funds intended for minority- and women-owned businesses. By leveraging her position as director of finance and administration at NYU’s Metropolitan Center for Research on Equity and Transformation of Schools (the “Metro Center”), Tappe rerouted approximately $3.3 million into bank accounts held by two shell companies she had established. These companies, operating as pass-through entities, were used to conceal the fraudulent nature of the scheme. Subcontractors, acting as intermediaries, facilitated the process, taking a percentage of the invoice amounts as “overhead” before channeling the remaining funds to Tappe’s fictitious shell companies.
The misappropriated funds financed Tappe’s personal expenses, including home renovations and an $80,000 swimming pool. This diversion of funds not only deprived students of necessary resources but also disadvantaged minority- and women-owned businesses, denying them fair opportunities for funding.
Manhattan District Attorney Bragg emphasized the detrimental impact of Tappe’s actions, stating, “Her fraudulent actions not only threatened to affect the quality of education for students with disabilities and multilingual students but denied our city’s minority- and women-owned business enterprises a chance to fairly compete for funding.” Bragg extended gratitude to the New York State Comptroller’s Office for its collaboration in uncovering and prosecuting cases of fraud in Manhattan, reaffirming the commitment to holding accountable those who exploit students and businesses.
Tappe, a resident of Westport, Conn., admitted to one count of grand larceny and was sentenced to five years’ probation. At the time of sentencing, she paid back the full restitution amount. Additionally, subcontractors implicated in the scheme have repaid $150,000.
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