State auditor arraigned for stealing over $400K from Town of Wallkill

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1 min read
July 17, 2025
The former state auditor is accused of exploiting his role to embezzle over $400,000 in public funds during a municipal audit.

WALLKILL, N.Y. — A former auditor with the New York State Comptroller’s Office has been arraigned on charges of grand larceny for allegedly stealing more than $405,000 from the Town of Wallkill while assigned to audit the town’s finances, Orange County District Attorney David M. Hoovler announced Monday.

Tobias Otieno, 41, of Hyde Park, is accused of using his role as an Auditor 1 between June 2022 and September 2024 to transfer town funds into personal business accounts, including Toncye Consulting and Tozaq Accounting Services. He was charged with Grand Larceny in the Second Degree as a Public Corruption Crime, a class B felony.

Investigators allege Otieno took advantage of his access to financial records and bank accounts during the audit to commit the theft. If convicted, he faces a maximum sentence of 8 1/3 to 25 years in state prison.

The case was investigated jointly by the Orange County Sheriff’s Office and District Attorney’s Office as part of the county’s White-collar Crimes Taskforce, with assistance from the State Comptroller’s Office. Forensic auditors traced the stolen funds and confirmed the theft.

Otieno was suspended and later terminated from his position once the alleged misconduct was discovered. A search warrant was executed at his residence in Hyde Park on July 10.

The investigation found no wrongdoing by Town of Wallkill officials. The town reported the fraud to its bank, which reimbursed the funds.

Due to state bail laws, a judge could not set bail in the case. Otieno is due back in Wallkill Town Court on July 30.

Phil Stilton

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