Former Auditor from State Comptroller’s Office Pled Guilty to Grand Larceny in the Second Degree as a Public Corruption Crime for stealing over $405,000 from the Town of Wallkill
Investigation Revealed no Misconduct by Town Officials
Orange County District Attorney David M. Hoovler announced that Tobias Otieno, 42, of Hyde Park, was sentenced in Orange County Court to four (4) to twelve (12) years in prison relative to his previously guilty plea to Grand Larceny in the Second Degree, as a Public Corruption Crime, a class B felony. The plea was in connection with the theft of $405,843 from the Town of Wallkill. As part of the prosecution, the defendant’s ill-gotten gains were clawed back and no further restitution was required.
At the time that he pled guilty, Otieno admitted that between June 23, 2022, and September 1, 2024, he was employed as an Auditor 1 for the New York State Office of the State Comptroller and was assigned to perform an audit of the Town of Wallkill. Otieno’s audit duties included analysis of financial operations, payroll, procurements, and non-payroll disbursements. Otieno was provided access to Town of Wallkill bank accounts and various financial documents during the audit and through the use of his public office he stole approximately $405,843.25 United States currency belonging to the Town of Wallkill by transferring funds from Town of Wallkill bank accounts to his personal business accounts.
The case was jointly investigated by the Orange County Sheriff’s Office and the Orange County District Attorney’s Office, under the auspices of the Orange County White Collar Crimes Task Force. The New York State Office of the State Comptroller fully cooperated and assisted in the investigation, including by providing forensic auditors who were able to analyze bank records and other business records which traced the source and disposition of the stolen funds. On July 10, 2025, police officers of the Orange County Sheriff’s Office and Orange County District Attorney’s Office, aided by investigators of the State Comptroller’s Office executed a search warrant at Otieno’s Hyde Park residence.
The investigation revealed no misconduct by any officials or employees of the Town of Wallkill. Town officials promptly reported the fraud to the Town’s financial institution and the bank reimbursed the Town. The Town of Wallkill Police Department was alerted to the allegations, made sure that other competent law enforcement agencies were investigating the allegations, but to avoid any appearance of impropriety, did not maintain an active role in the investigation. Otieno was immediately suspended by the Comptroller’s office upon discovery of potential misconduct and subsequently terminated from employment.
The Orange County Joint White Collar Crimes Task Force was created by District Attorney David M. Hoovler and Sheriff Paul Arteta in March 2023. Since the creation of the Task Force other local and state law enforcement agencies have joined. Local police agencies that joined include the Town of Newburgh Police Department, the Village of Goshen Police Department, the Town of New Windsor Police Department, the Town of Crawford Police Department, the Town of Wallkill Police Department, the Town of Woodbury Police Department, and the Town of Warwick Police Department. The Task Force allows agencies to share investigative resources on white collar and other complex criminal investigations. An experienced Assistant District Attorney is assigned to aid in all investigations as they progress.
District Attorney Hoovler thanked all of the law enforcement agencies who worked together to conduct a prompt and thorough investigation into this theft of public funds. District Attorney Hoovler specifically thanked the New York State Comptroller’s Office for their cooperation and assistance in the investigation.
“This defendant’s admitted conduct was a self-serving crime that subverted the trust placed in him by way of his employment,” said District Attorney David M. Hoovler. “But for the dedicated efforts of the skilled investigators from the Orange County Sheriff’s Office and from my office, who worked closely with investigative staff from the Office of the State Comptroller, this defendant’s crimes might not have been uncovered. I thank the Town of Wallkill officials for their assistance in this investigation and remind municipalities undergoing audits by any outside agencies, whether public or private, that it is important to consistently monitor and reconcile their accounts to safeguard public funds.”
“This sentence ensures that Tobias Otieno will pay for his crimes and his betrayal of the responsibilities entrusted to him. My thanks to District Attorney Hoovler and Sheriff Arteta for seeing justice to its conclusion in this case,” said State Comptroller DiNapoli.
The case is being prosecuted by Executive Assistant District Attorney Tanja Beemer.
A criminal charge is merely an allegation by the police that a defendant has committed a violation of the criminal law, and it is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the State of New York’s burden to prove guilt beyond a reasonable doubt.
