N.Y. state auditor whose job is to uncover financial fraud accused of financial fraud himself

A state auditor whose job was, in part, to uncover financial fraud is now accused of committing financial fraud himself.

Tobias Otieno, 41, is charged with grand larceny as a public corruption crime. 

Otieno worked for the New York state comptroller. He's accused of stealing $408,000 from the Town of Wallkill. 

"It's appalling and it's hard to express the level of outrage from the comptroller and all members of this office at this absolutely abhorrent and rogue behavior by a staff member," said Nelson Sheingold, chief counsel to state Comptroller Tom DiNapoli. 

"A very highly sophisticated and complex scheme"  

Sheingold said Otieno was assigned to audit finances for Wallkill in Orange County. During the audit, Otieno allegedly accessed town bank accounts. 

"And through a very highly sophisticated and complex scheme, steal the money by laundering it through multiple shell companies and other devices to get the money to himself," Sheingold said. 

CBS News New York was told Otieno was not available for comment. He was arraigned Thursday and released, and is due back in court July 30. 

Investigators say the ongoing probe has found no wrongdoing by anyone with the Town of Wallkill.

The comptroller is also checking all of the Otieno's prior audits. 

He's been fired from his job, which paid about $75,000 a year.

Neighbor Jerry Sarmiento said he saw investigators raiding Otieno's Dutchess County home Thursday. 

"When I left for work, I saw the activity and didn't know what was going on," Sarmiento said. "Very surprised. Very surprised. The guy was quiet, didn't seem to be that type of person. But I knew he worked for the comptroller."