Day Trading Losses Fueled RI Man’s Embezzlement of Millions From School for Disadvantaged
Saturday, December 03, 2022
Nathan Kaufman embezzled more than $3 million dollars from a school for innercity children, according to the Rhode Island State Police.
Now, details are emerging that Kaufman used the money to cover his day-trading losses in the stock market.
His arrest took place in September.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTOf the more than $3 million he transferred from the school's accounts to his own personal account and a "consulting" company he owned, the receiver appointed by the court has only been able to recover $1.3 million.
In January, the Dow Jones Industrial Average started the year above 36,585 and, by June, had fallen to 29,988.
At the same time as Kaufman was looting the school, he was also playing golf in leading tournaments around Rhode Island. Kaufman attended Classical High School in Providence and Clemson University. He was an accomplished golfer.
Kaufman had served as the Finance Director at UCAP for over a decade — a small school for urban children with education challenges.
The school was founded decades earlier by education visionary Rob DeBlois — a man committed to helping inner-city youth. DeBlois had led the school from a wheelchair for three decades, as he was a quadriplegic from a diving accident in college. The middle school focuses on children who have been held back at least one year. UCAP has had a track record of tremendous success.
DeBlois died in 2020.
In late October, Superior Court Judge Brian Stern appointed a temporary receiver on behalf of two corporate entities tied to The Urban Collaborative Accelerated Program (UCAP) to secure millions in stolen funds.
The receiver was appointed on behalf of the school to recover all “cash, stocks, bonds, intangibles, property, or assets of any kind held in or on behalf of the account of Nathan Kaufman at TD Ameritrade."
Arrested in September
The Rhode Island State Police arrested Kaufman in September.
According to the Rhode Island State Police documents, Kaufman embezzled by transferring three million to a TD Ameritrade account.
Kaufman made four withdrawals:
January 25, 2022 - $750,000.00
February 14, 2022 - $250,000.00
March 22, 2022 - $1,000,000.00
May 10, 2022 - $1,000,000.00
State Police Outline How $3 Million Was Transferred From School Account to Kaufman's TD Ameritrade Account - Now Under Control of Receiver
“All four wire transfers were sent to TD Ameritrade account REDACTED, listing Nathan Kaufman, Joy Street, Providence, RI 02908 as the account holder. Ms. [Lynn] Prentiss [executive director of UCAP] advised that Mr. Kaufman did have access to all financial accounts of UCAP in his role as Director of Finance and Operations, however, he did not have authorization to make any transfers to his personal accounts,” according to State Police documents," according to a State Police report.
Related Articles
- Nathan Kaufman: While He Was Golfing, He Was Allegedly Ripping off RI Kids for Millions
- RI Education Pioneer Rob DeBlois Passes — Creator of UCAP and Inspiration to All
- Superior Court Judge Appoints Receiver to Recover $3 Million Embezzled From School for Disadvantaged
- NEW: Bill Will Help UCAP Expand Education Facilities
- Finley Succeeds DeBlois as Director of UCAP School
