Superior Court Judge Appoints Receiver to Recover $3 Million Embezzled From School for Disadvantaged

Superior Court Judge Appoints Receiver to Recover $3 Million Embezzled From School for Disadvantaged

Superior Court Judge Brian Stern has 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 school is the alleged victim of a more than $3 million embezzlement by Nathan Kaufamn -- the school's former finance director.

UCAP is a small school for urban children with educational challenges.

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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."

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.

Per the order of Stern, “The Receiver is empowered to and shall take full access and control of the Account. The receiver is further empowered and authorized to take any and all action relative to the account to protect the status quo and the assets in the account, including selling, transferring, freezing, liquidating or otherwise encumbering all assets held in the account."

In addition, according to the order, “TD Ameritrade shall provide to the receiver any and all access to the account to effectuate the purposes of this order and shall provide the receiver any and all information pertaining to the account requested by the receiver, and the receiver is authorized to access any account held, owned, or accessed by Nathan Kaufman to which funds were transferred, deposited, sold, or otherwise moved from the account.”

Stern named Christopher J. Fragomeni of Savage Law Partners to serve as the temporary receiver.