Former State Auditor Pleads Guilty to Stealing $405,843 from Town of Wallkill

Tobias Otieno, 41, entered a guilty plea in Orange County Court on February 17 to Grand Larceny in the Second Degree after admitting he stole $405,843.25 from the Town of Wallkill by transferring town funds into his personal business accounts between June 23, 2022 and September 1, 2024. Under a plea agreement, prosecutors will recommend a prison term of four to 12 years at a sentencing hearing scheduled in June 2026.

Otieno had been employed as an Auditor 1 with the New York State Office of the State Comptroller since 2018 and was assigned to perform the audit of the Town of Wallkill that included analysis of financial operations, payroll, procurements, and non-payroll disbursements. Prosecutors say he used the access granted by that assignment to move money from Town of Wallkill bank accounts into accounts tied to his businesses during the audit period.

Investigators executed a search warrant at Otieno’s Hyde Park residence on July 10, 2025 and arrested him that day; earlier local proceedings included a July 30, 2025 appearance in Wallkill Town Court. The Orange County District Attorney’s Office and Orange County Sheriff’s Office, working under the Orange County Joint White Collar Crimes Task Force, traced transfers through bank and business records, and forensic auditors from the state comptroller’s office assisted in reviewing financial documents.

Orange County District Attorney David Hoovler condemned the conduct in court, saying, “The use of a governmental position to steal public monies is a most serious offense that warrants severe punishment.” Hoovler’s office has reported that the investigation revealed no misconduct by any Town of Wallkill officials or employees. Wallkill officials immediately notified the town’s financial institution when the fraud was detected, and the bank reimbursed the town for the stolen funds.

The comptroller’s office suspended Otieno immediately when allegations surfaced and later terminated his employment; the office also conducted an extensive forensic analysis of his financial records and reviewed his other audits, finding no evidence of theft from any other municipality. Prosecutors and local law enforcement note the case helped precipitate formation of the Orange County Joint White Collar Crimes Task Force, established by DA Hoovler and Sheriff Paul Arteta in March 2023 to coordinate complex financial investigations.

State Comptroller Thomas DiNapoli commented on the case’s breach of public trust, saying, “This individual betrayed the public trust and will now pay for it.” The DA’s press release reiterated the legal caution that a criminal charge is an allegation and that defendants are presumed innocent and entitled to a fair trial; court records show Otieno previously pleaded not guilty after initial charges were filed last year. Sentencing preparations and the prosecutor’s recommendation of a four- to 12-year prison term will be addressed at the June 2026 hearing.