The case was handled by the Orange County District Attorney’s Office, which described the scheme as highly sophisticated and complex. Authorities allege that Otieno went beyond simple transfers and took deliberate steps to hide the money trail.
To avoid detection, he is said to have moved the stolen funds through several shell companies and different financial channels.
By spreading out the transactions and using business accounts, investigators believe he attempted to make the activity look legitimate and harder to trace.
The alleged theft only came to light after financial reviews raised questions about unusual transactions linked to the town’s accounts.
Once discrepancies were discovered, a deeper investigation followed, leading to criminal charges.
During his court appearance, Otieno admitted to the charge of second-degree grand larceny, a serious offense under New York law.
The crime involves the theft of property valued above a certain threshold, in this case hundreds of thousands of dollars belonging to taxpayers.
Legal experts say the conviction could result in significant prison time, depending on the final sentence handed down by the court.
In addition to possible jail time, Otieno may also be ordered to pay restitution, meaning he would have to repay the stolen funds.
The case has drawn attention because it involves a public official entrusted with overseeing financial integrity.
State auditors are expected to detect misuse of funds, not participate in it. Prosecutors emphasized that the crime represents a betrayal of public confidence.