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A former state auditor has admitted to stealing more than $405,000 from the Town of Wallkill while he was supposed to be reviewing the municipality's finances.
Tobias Otieno, 41, of Hyde Park, pleaded guilty on Tuesday (February 17) to second-degree grand larceny as a public corruption crime, a class B felony, in Orange County Court. The former employee of the New York State Comptroller's Office admitted to stealing $405,843.25 from the town between June 2022 and September 2024.
During his court appearance, Otieno acknowledged that he used his position as an Auditor 1 to gain access to Wallkill's bank accounts and financial documents, then transferred town funds to his personal business accounts. He had been assigned to analyze the town's financial operations, including payroll and non-payroll disbursements.
"The use of a governmental position to steal public monies is a most serious offense that warrants severe punishment," said Orange County District Attorney David M. Hoovler in a statement announcing the plea.
Under the plea agreement, prosecutors will recommend a prison sentence of four to 12 years when Otieno is sentenced on June 1.
The case was jointly investigated by the Orange County Sheriff's Office and the District Attorney's Office under the county's White Collar Crimes Task Force. Forensic auditors from the comptroller's office assisted in reviewing financial documents and tracing the stolen funds.
Authorities executed a search warrant at Otieno's Hyde Park home on July 10, 2025, the day he was arrested. The investigation found no evidence of misconduct by any Wallkill officials or employees. Town officials promptly reported the fraud to their financial institution, which reimbursed the town for the stolen funds.
"This individual betrayed the public trust and will now pay for it," State Comptroller DiNapoli said. "When his wrongdoing was identified, we immediately partnered with District Attorney Hoovler and the Orange County Sheriff's Office."
Otieno began working for the comptroller's office in 2018 as a municipal auditor. He was immediately suspended and later terminated from his position after the allegations surfaced. The comptroller's office conducted an extensive forensic analysis of his financial records and reviewed his other audits, finding no evidence of theft from any other municipality.
The Wallkill Police Department was notified of the allegations but did not take an active role in the investigation to avoid any appearance of impropriety.