NY State Auditor Accused of Stealing $405,000 From Town of Wallkill

A man sent from the NY State Comptroller’s Office to audit the city’s finances allegedly transferred money to his personal businesses.

The entrance to the Government Center in Wallkill, New York, on Feb. 23, 2016. Yvonne Marcotte/The Epoch Times

ORANGE COUNTY, N.Y.—A man sent by the New York state comptroller to audit the Town of Wallkill’s finances allegedly stole $405,000 from the town, the Orange County Sheriff’s Office announced on July 10.

Tobias Otieno, 41, of Hyde Park in Dutchess County, allegedly stole the money while auditing the town’s finances between mid-2022 and late 2024. Otieno was charged with grand larceny in the second degree as a public corruption crime.

Because of bail reform laws, Otieno has been released without bail and is scheduled to appear in Wallkill Town Court.

Otieno allegedly stole Wallkill Town Supervisor George Serrano’s signature and other sensitive financial information during the auditing process, said authorities. He used these to transfer money to his personal businesses from Town of Wallkill bank accounts.

Serrano told The Epoch Times: “My signature was stolen. I did not sign any contract with Tobias or any other companies that belonged to him. [The information was] used to steal that money from the town.”

The town noticed the missing money in April of 2024, said authorities. The bank, law enforcement, and state were immediately contacted, and the money was retrieved.

Otieno was one of three auditors working in the Wallkill Town Hall for about a year and a half. It was determined that Otieno was the alleged sole perpetrator of all malicious actions.

Auditing of Wallkill’s financial management, procurement, and payroll was initiated based on allegations from a former councilman, according to Serrano. Otieno’s alleged actions were investigated by the Orange County White Collar Crimes Task Force. Their investigation found no misconduct by any Wallkill officials.

“The investigation conducted by the New York State Comptroller’s Office, the Orange County Sheriff’s Department, and the Orange County District Attorney’s Office found no wrongdoing by any Town officials,” Serrano said in a statement. “There has been no report of any money, in any amount missing from the Town; except those that were taken by this State employee.”

Serrano told The Epoch Times that due to this incident, the town will be more vigilant with its finances. This includes more use of positive pay, which is a series of checks a bank does when doing transactions with its clients. The process helps to more thoroughly prevent fraud.

The Orange County White Collar Crimes Task Force was launched in 2023 as a means to crack down on nonviolent monetary crimes. The task force was created through the collaboration of the District Attorney’s Office, the Orange County Sheriff Paul Arteta, and local police districts.