An East Meadow man who was the president of a Hempstead co-op has pleaded guilty to stealing funds from the building’s account.
During his tenure as president of the Marlboro Owners Corporation cooperative in Hempstead from 2016 to 2023, Juan Alayo oversaw the co-op’s operations, scheduled building maintenance and repairs, and worked with vendors and contractors, earning him a $200-per-month salary, which residents agreed to pay. The co-op has 16 units and its residents are primarily Spanish-speaking immigrants.
While serving as co-op president, Alayo wrote checks to himself and his company, A&J Cleaning Services without the co-op board’s permission and falsified the co-op’s business records to hide his thefts. He embezzled more than $26,700 of co-op funds. As president, Alayo was also responsible for maintaining the co-op’s business records, which he falsified in order to hide his thefts. For example, in one instance a check for $2,466.30 was recorded in the co-op book as payment for “TRAGAR,” an oil company, however, the check was actually sent to and cashed by A&J.
Alayo remained president until 2023 when he sold his apartment and moved out of the building. Later that year, a new co-op president was elected, and Alayo’s scheme was discovered. When the new president reviewed the co-op’s finances, he and other board members noticed some irregular transactions. Upon review of the co-op’s business records, which were hand-written by Alayo, in contrast to the co-op’s banking records, the board found A&J received and cashed checks that were falsely made to look as though they were for legitimate co-op expenses. Members of the co-op board reported the theft to the Nassau District Attorney’s Office, which referred the matter to the Office of the Attorney General.
Alayo, 72, pleaded guilty before Acting Supreme Court Justice Robert Bogle to Grand Larceny in the Fourth Degree, a Class E felony, and to Petit Larceny, a class A misdemeanor, and agreed to pay $26,738 in restitution to the co-op and complete 210 hours of community service. If Alayo does not pay back the restitution and complete his community service, he will be sentenced to one year in jail.
“When co-op leaders steal from the buildings they’re entrusted to manage, the entire community suffers,” New York Attorney General Letitia James said. “Juan Alayo’s neighbors elected him to oversee their building, and Mr. Alayo violated their trust to line his own pockets. My office will not tolerate anyone who breaks the law to steal from their neighbors. We will continue to hold anyone accountable who commits this type of fraud.”