Hyde Park Man Sentenced To Jail Time After Pleading Guilty To $400K Theft From Town He Was Auditing: DA

Wallkill, NY — A former state auditor was sentenced to up to 12 years behind bars Tuesday after pleading guilty to charges that prosecutors said stemmed from his theft of $405,843 from the Town of Wallkill, prosecutors announced Tuesday.

Per Orange County DA David Hoovler, 42-year-old Hyde Park resident Tobias Otieno was sentenced to between four and 12 years in jail after pleading guilty to one count of second-degree grand larceny as a public corruption crime.

According to Otieno’s plea, he had been employed as an auditor in the New York State Comptroller’s office between June 23, 2022 and Sept. 1, 2024 and assigned to audit the Town of Wallkill.

As part of that audit, prosecutors said Otieno was tasked with analyzing the town’s financial operations, payroll, purchasing and non-payroll payments. To perform that work, prosecutors said Otieno was given access to the town’s bank accounts and financial documents.

During the audit, prosecutors said Otieno stole about $405,843.25 from the town by transferring funds from the town’s bank accounts to his personal accounts.

“This defendant’s admitted conduct was a self-serving crime that subverted the trust placed in him by way of his employment,” Hoovler said. “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.”

According to prosecutors, forensic auditors analyzed bank and business records to track the stolen money. That investigation, prosecutors said, revealed no misconduct by town officials or employees — in fact, prosecutors said town officials “promptly reported the fraud to the town’s financial institution” and the town was reimbursed.

As for the Comptroller’s office, Otieno’s employer at the time, Otieno was immediately suspended when the potential misconduct came to light, and ultimately fired, prosecutors said.

“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,” State Comptroller Thomas DiNapoli said.