From Auditor To Criminal: a $405,000 Betrayal In New York

He was supposed to be watching the money, but instead, prosecutors say he was moving it.

An auditor from the New York State Comptroller’s Office admitted to stealing more than $405,000 from the Town of Wallkill while assigned to review its finances.

State Auditor Admits Stealing $405K From Town He Was Assigned to Review

According to Orange County District Attorney David M. Hoovler, Tobias Otieno, 41, of Hyde Park, pleaded guilty on February 17 to second-degree grand larceny, a felony tied to public corruption.

Otieno worked as an auditor for the New York State Office of the State Comptroller and had been assigned to examine the finances of the Town of Wallkill.

Instead of simply reviewing payroll and spending records, he admitted to transferring town funds into business accounts which he controlled to the tune of $405,843.25.

How a State Auditor Stole Almost Half a Million Dollars

According to the District Attorney's announcement, between June 2022 and September 2024, Otieno had access to Wallkill Town bank accounts and financial records as part of his audit work. Prosecutors say he then used that access to quietly move money from those town accounts into his own business accounts.

As part of the investigation, police executed a search warrant in July 2025 at his Hyde Park home. There was reportedly no wrongdoing by Town of Wallkill officials or employees.

The suspicious activity was actually reported to the bank by town leaders and they subsequently reimbursed the town.

The Comptroller’s Office suspended Otieno once the suspected misconduct surfaced and later terminated his employment.

State Comptroller Thomas P. DiNapoli said the office worked with local investigators after discovering the issue, however the town's police department did was not a part of the investigation to avoid a conflict of interest.

The case was instead handled by the Orange County Sheriff’s Office and the district attorney’s white-collar crimes task force.

He now faces a recommended sentence of four to twelve years in state prison when he is sentenced on June 1.

But for now, one thing is clear: the watchdog became the defendant.