(WNY News Now) – Hempstead, NY – Juan Alayo, the former president of the Marlboro Owners Corporation cooperative in Hempstead, New York, has pleaded guilty to embezzling $26,738 in building funds. New York Attorney General Letitia James announced the plea agreement, which holds the 72-year-old East Meadow resident accountable for Grand Larceny in the Fourth Degree and Petit Larceny.
As part of the agreement, Alayo will repay the stolen funds and complete 210 hours of community service. Failure to meet these conditions will result in a one-year jail sentence.
A Breach of Trust
Alayo served as president of the 16-unit co-op, predominantly home to Spanish-speaking immigrant residents, from 2016 to 2023. During his tenure, he diverted co-op funds by issuing unauthorized checks to himself and his company, A&J Cleaning Services, under the guise of legitimate expenses. To conceal his theft, he falsified the co-op’s financial records.
One fraudulent transaction included a $2,466.30 check recorded as a payment to an oil company, but which was cashed by A&J. Alayo’s actions came to light after he moved out of the co-op in 2023 and a new president uncovered discrepancies during a financial review.
Community Impact and Legal Actions
Attorney General James underscored the betrayal of trust by Alayo, stating, “When co-op leaders steal from the buildings they’re entrusted to manage, the entire community suffers.” Her office worked closely with the Nassau District Attorney’s Office and the New York State Police to investigate the case.
Alayo’s guilty plea not only requires restitution but also highlights the importance of transparency in community governance. The Marlboro Owners Corporation has since taken steps to improve oversight and accountability.
Prosecution and Investigation
The case was prosecuted by Assistant Attorney General Jimei Hon under the Public Integrity Bureau. The investigation involved collaboration with multiple state agencies, including the Major Investigations Unit of the New York State Police.
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