An official involved in academic equity programs pleaded guilty to the startling crime of embezzlement. A once admired figure, Cindy Tappe, diverted millions from New York University (NYU), using the embezzled funds for personal indulgences like an elaborate $80,000 pool at her luxurious Connecticut home. Not without a sense of irony, these misappropriated funds were initially destined for supporting women and minority businesses.
Interception and Transition
Caught in the act, Tappe, aged 57, admitted to her crime on Monday, as confirmed by prosecutors in Manhattan. This shocking revelation did not initially hinder Tappe's professional trajectory, as she secured a new role as the Operations Director at the Yale School of Medicine. Inevitably, once the charges surfaced, the Ivy League school dismissed her.
The Spider Web of Embezzlement
Serving formerly as the Director of Finance and Administration at NYU's Metropolitan Center for Research on Equity and Transformation of Schools, Tappe used her position to transfer $3.5 million into two shell companies she controlled between 2012 and 2018. So, how was this accomplished? It's alleged Tappe funneled payments intended for NYU through these companies. Beyond covering university payments, she spent more than $660,000 on personal items.
NYU Responds to Tappe Activities
NYU's spokesperson, John Beckman, spoke about the steps taken by the university after suspicious activities were flagged. He noted how NYU's Internal Audit office had conducted thorough investigations, immediately sharing their findings with the State Department of Education and the State Comptroller's Office. NYU fully cooperated with investigators on this matter.
ALSO READ: California's Reparations Plan May Cost Taxpayers $2.8 Trillion, Raising Concerns Amid $68B Deficit
Funds Misappropriated, Who Suffers?
The stolen money was part of a generous $23 million state grant fund. Its intended use was traced to programs for bilingual and special education students. The provisions of the grant necessitated that a proportion should be allocated to certified minority and women-owned business enterprises. Far from this noble goal, Tappe orchestrated the diversion of these funds to three subcontractors using self-made fictitious invoices, ultimately landing in her accounts.
According To Law
As part of the plea agreement, Tappe agreed to return the stolen money. For secondary-degree grand theft, the consequence usually stands at five years on probation. Additional charges, including fraud, money laundering, and falsifying business records, are expected to be dropped as part of the plea deal. The case will conclude when Tappe's sentencing hearing is on April 16.
Reflections on The Case
John Beckman expressed regret, saying, "Ms. Tappe abused the trust we placed in her; she stole from everyone - the taxpayer, the university, the Metro Center. NYU is pleased to have assisted in stopping this misdirection of taxpayer money." There's undoubtedly a sense of closure, but a mere legal conclusion will not erase the profound impact of such a breach of trust. Tappe's lawyer is yet to make a public comment on the case. The battle against fund misappropriation calls for heavier safeguards and more stringent audits.
RELATED TOPIC: Indiana Supreme Court New Proposal Opens Bar Exam to Graduates from Non-ABA Accredited Law Schools
© 2023 Lawyer Herald All rights reserved. Do not reproduce without permission.
Get the Most Popular Lawyerherald Stories in a Weekly Newsletter
Join the Discussion
