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NEW YORK CITY — A federal judge has granted a continuance in a money laundering case with connections to Marlboro.

On April 27, Seth Andrew, founder of Democracy Prep, a charter school network with more than 6,500 students across the country, was arrested in New York and charged with wire fraud, money laundering, and making false statements to a financial institution.

According to court documents, Andrew stole $218,005 from Democracy Prep, and used the money to get a favorable mortgage rate on a $2.4 million apartment in New York City.

Andrew pleaded not guilty and was released on $500,000 bail.

In 2020, Andrew and his family moved to Marlboro, where he co-founded a new venture, Democracy Builders Fund I, on the campus of Marlboro College. Democracy Builders bought the campus for $225,000 in cash and the assumption of $1.5 million debt the college owed to the Marlboro Music Festival.

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Following the sale of the campus, Marlboro College closed and merged with Emerson College in Boston. Democracy Builders established Degrees of Freedom on the campus, launching “a new model of higher education, where high school students can earn college credit, and high school/GED graduates can get the boost they need to access, competitive colleges and well-paid careers.”

Ryan B. Finkel, Assistant United States Attorney for the Southern District of New York, requested the continuance of the time within which an indictment or information would otherwise have to be filed.

“Defense counsel and the Government are discussing a potential disposition to this case and other matters,” wrote Finekl. “Therefore, the Government is requesting a 30-day continuance until July 27, 2021, to continue the foregoing discussions.”

Andrew’s attorneys did not return a request for comment.

Bob Audette can be contacted at raudette@reformer.com.