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Former Nassau County co-op president pleads guilty to stealing building funds

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Sunday, December 22, 2024

Former Nassau County co-op president pleads guilty to stealing building funds

State AG
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Attorney General Letitia James | Ballotpedia

New York Attorney General Letitia James announced that Juan Alayo, a former co-op president from East Meadow, New York, pleaded guilty to embezzling over $26,700 in funds from the Marlboro Owners Corporation cooperative. Alayo served as president of the Hempstead-based co-op from 2016 to 2023 and admitted to writing unauthorized checks to himself and his company, A&J Cleaning Services (A&J). He also falsified business records to conceal these thefts.

Alayo has agreed to pay $26,738 in restitution and complete 210 hours of community service. If he fails to meet these conditions, he faces up to one year in jail. "When co-op leaders steal from the buildings they’re entrusted to manage, the entire community suffers," stated Attorney General James. "Juan Alayo’s neighbors elected him to oversee their building, and Mr. Alayo violated their trust to line his own pockets."

The Marlboro Owners Corporation is a cooperative consisting of 16 units primarily occupied by Spanish-speaking immigrants. As president, Alayo managed operations including maintenance scheduling and vendor coordination for a salary of $200 per month.

Alayo's fraudulent activities were uncovered when the new co-op president noticed irregularities in financial transactions after Alayo sold his apartment and left in 2023. Checks made out to A&J were found recorded under false pretenses as legitimate expenses.

The Nassau District Attorney’s Office referred the case to the Attorney General's Office after being alerted by the co-op board about suspicious activities. The case was prosecuted by Assistant Attorney General Jimei Hon with oversight from Public Integrity Bureau Chief Gerard Murphy.

Attorney General James acknowledged support from various agencies including the New York State Police and investigative personnel under Detective Supervisor Anna Ospanova.

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