Investigation underway in Wallkill following grand larceny charges.
Tobias Otieno, a state auditor, faces grand larceny charges after allegedly stealing $408,000 from the Town of Wallkill. The misconduct occurred during an audit period, prompting his suspension and termination. Otieno is accused of laundering stolen funds through shell companies, and a search warrant was executed at his residence. His actions have shocked the community, leading to a broader investigation into Wallkill’s financial practices. The town’s bank promptly reported the fraud, allowing for reimbursement of the stolen funds.
New York – Tobias Otieno, a 41-year-old state auditor for the New York State Comptroller, has been charged with grand larceny following allegations that he stole approximately $408,000 from the Town of Wallkill. The misconduct reportedly took place during an audit period from June 23, 2022 to September 1, 2024. In light of these allegations, Otieno has been suspended and subsequently terminated from his position, which carried a salary of around $75,000 per year.
According to investigators, Otieno accessed the bank accounts of the Town of Wallkill while conducting his audit. He is accused of devising a complex scheme to launder the stolen funds through multiple shell companies, which included his personal business accounts under names such as Toncye Consulting and Tozaq Accounting Services. The Orange County District Attorney’s Office executed a search warrant at Otieno’s residence in Dutchess County as part of the ongoing investigation.
Nelson Sheingold, the chief counsel to State Comptroller Tom DiNapoli, expressed strong disapproval of Otieno’s actions, categorizing them as “abhorrent and rogue behavior.” Investigators from both the Sheriff’s Office and the District Attorney’s Office, aided by the state comptroller’s office, have been working on the case. It has been confirmed that there is no wrongdoing by any officials or employees within the Town of Wallkill.
The town’s bank acted promptly in reporting the fraud, allowing for the reimbursement of the stolen funds. Following his arraignment in the New Windsor Town Court, Otieno pleaded not guilty and is scheduled for his next court appearance on July 30. If convicted of the charges, he faces a potential prison sentence ranging from 8 years and 4 months to 25 years.
The incident has raised concerns and led to a broader examination of Wallkill’s financial operations, with both federal and state authorities reviewing the town’s procurement practices and overall financial management.
Otieno’s case has shocked local residents. A neighbor recounts being surprised by the investigation, noting that Otieno had always appeared quiet and had shown no previous signs of such behavior.
As the investigation progresses, the state comptroller’s office has initiated a comprehensive review of all audits conducted by Otieno to ensure that there are no further discrepancies. The fallout from this case is likely to extend beyond Otieno, affecting trust in public officials and raising questions about oversight in municipal finances.
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