Four pre-school providers, including a rabbi, are facing charges that they stole millions in state funding intended for special needs students.
Queens District Attorney Richard Brown says over a seven year period, the men either kept, spent or gave relatives about $12.4 million.
Rabbi Samuel Hiller, 56, Ira Kurman, 52, Roy Hoffmann, 50 and and Daniel Laniado, 41, are charged with larceny, identity theft and falsifying business records.
The DA says the scheme was first uncovered in 2012 when auditors discovered that one of the men resigned and took the company's records with him.
All four men face up to 25 years in prison if convicted.