Toy Soldiers
(1991)

The movie is set in a school for troubled youths and rich kids led by Dean Tepper (Louis Gosset jr.). The school is taken over by Luis Cali, the son of a drug kingpin. Cali's father is sentenced to die and the terrorists take over the school because the son of Supreme Court Judge goes there. The problem is, the judge's son was already removed from the school.

The terrorists find out that the other students are sons of famous bankers, politicians and even a mafia boss played by Jerry Orbach who turns out to be the father of Joey Trotta (Wil Wheaton). They wire the building to explode if the receiver is removed from the wrist of the head terrorist.

Trotta's best friend and leader of a pack of misfits Billy Tepper (Sean Astin), plans to get intel to the soliders so they can formulate an attack. Word also travels back to the Cali, from his father, to let Trotta go. When Cali releases him without his friends, Trotta attacks him and grabs a gun causing one of the other terrorists to kill him. Word gets back to Trotta's father and he has Cali's father killed in jail.  Before Cali finds out about this, the military uses the intel Tepper gave them to rush the school. When Cali realizes what is going on, he tries to detonate the bomb from his wrist receiver only to see that a toy plane that Tepper and some of his friends had switched out the transceiver, fly.

Cali takes Billy hostage, but is killed by the special forces.

Thanks Kevin D!