A Kenyan national who once worked as a government auditor in New York has admitted to stealing more than $405,000 (KSh 52.6 million) from a local municipality, in a case that authorities say represents a serious abuse of public trust. US-based Ksntoday.com reports
Tobias Otieno, 41, pleaded guilty to second-degree grand larceny for siphoning funds from the Town of Wallkill in Orange County. His sentencing is scheduled for June 1, where he faces a potential prison term of four to twelve years under New York law.
How the Scheme Unfolded
According to prosecutors, Otieno used his position with the New York State Office of the State Comptroller to divert municipal funds into business accounts he controlled.
The theft occurred over a two-year period between June 2022 and September 2024. Investigators say Otieno had been assigned to review Wallkill’s finances but instead exploited his authorized access to move money for personal benefit.
The irregularities came to light in 2025 when town officials detected suspicious transactions during routine financial monitoring.
Investigation and Arrest
Authorities executed a search warrant at Otieno’s home in Hyde Park in July 2025, leading to his arrest.
Forensic auditors from the Comptroller’s office conducted a broader review following the discovery. Officials reported that:
- No other Town of Wallkill employees were involved
- Otieno’s audits in other municipalities showed no similar misconduct
- The town’s financial institution reimbursed the full amount lost
Otieno was suspended and later dismissed from his position after the investigation began.
Officials Call Case a Breach of Trust
Orange County District Attorney David M. Hoovler characterized the crime as a significant violation of public confidence, emphasizing the responsibility entrusted to government auditors.
The State Comptroller’s office likewise condemned the conduct, noting that Otieno had abused the very oversight powers designed to protect public funds.
What Happens Next
Otieno’s guilty plea to second-degree grand larceny — a felony in New York — carries a possible sentence of four to twelve years in state prison. The final decision will be made at his June 1 sentencing hearing.
While Wallkill has been made financially whole, the case highlights ongoing concerns about internal controls and oversight even within systems designed to safeguard taxpayer money.
