A state auditor is facing serious charges after stealing more than $405,000 from the Town of Wallkill during an official audit, according to Orange County District Attorney David M. Hoovler.

Tobias Otieno, 41, of Hyde Park, was arraigned on a felony complaint charging him with grand larceny in the second degree as a public corruption crime, a class B felony.

Hoovler says Otieno was employed as an Auditor 1 for the New York State Office of the State Comptroller and was assigned to audit Wallkill’s financial operations between June 23, 2022, and Sept. 1, 2024.

The complaint alleges Otieno used his public position to access town bank accounts and financial documents, then transferred $405,843.25 into personal business accounts, including Toncye Consulting and Tozaq Accounting Services.

The case was investigated by the Orange County Sheriff’s Office and District Attorney’s Office under the Orange County White Collar Crimes Taskforce, with assistance from the State Comptroller’s Office and its forensic auditors.

A search warrant was executed at Otieno’s Hyde Park home on July 10.

The investigation revealed no misconduct by any officials or employees of the Town of Wallkill. Town officials reported the alleged fraud to the town’s financial institution and the bank reimbursed the town.

“We are outraged by this former employee's actions and betrayal of trust. Once we learned of his actions, we immediately partnered with law enforcement to fully investigate this matter, hold him accountable, and moved to terminate him from service. I thank Orange County District Attorney Hoovler and the Orange County Sheriff’s office for their thoroughness and professionalism. We will continue do everything we can to assist in prosecuting him to the fullest extent possible,” New York State Comptroller Thomas DiNapoli said.

Wallkill residents are upset to hear about these allegations.

"It's expected when people are put in position of power that they do the right thing and they represent the people they are there to represent, not their own pocketbook," says Wallkill resident Derick Williams.

Due to state bail reform laws, bail could not be set. The case is scheduled to return to Town of Wallkill Court on July 30.