New York Attorney General Letitia James announced today that Juan Alayo, 72, of East Meadow, has pleaded guilty to embezzling more than $26,700 in funds from the Marlboro Owners Corporation, a co-op in Hempstead, New York, where he served as president from 2016 to 2023. Alayo’s theft was uncovered after he wrote unauthorized checks to himself and his company, A&J Cleaning Services, and falsified business records to conceal the crime.
Alayo, who served as president of the cooperative, was responsible for overseeing the co-op’s operations, managing repairs and maintenance, and coordinating with vendors. During his tenure, Alayo exploited his position, writing checks to himself and A&J Cleaning Services without board approval. He also falsified the co-op’s financial records to cover up the theft. One such instance involved a check for $2,466.30, which Alayo recorded as a payment for an oil company, “TRAGAR,” but the check was actually cashed by A&J.
Alayo pleaded guilty to ‘Grand Larceny in the Fourth Degree’ (a Class E felony) and ‘Petit Larceny’ (a Class A misdemeanor) after his fraudulent activities were discovered in 2023, when a new president of the co-op took office. The new board members, reviewing the finances, found discrepancies between the co-op’s business records and banking transactions. These irregularities led to the discovery that A&J had received checks disguised as legitimate payments for co-op expenses.
“Co-op leaders have a sacred responsibility to protect the trust of their neighbors and manage shared resources with integrity. Juan Alayo violated that trust and stole from the very community that entrusted him with leadership,” said Attorney General James. “My office will continue to hold those who exploit their positions for personal gain accountable. This is a clear example of how abuse of power can harm an entire community, and we will not tolerate it.”
As part of his guilty plea, Alayo has agreed to pay ‘$26,738 in restitution’ to the Marlboro Owners Corporation and complete ‘210 hours of community service’. If he fails to meet these conditions, he faces the possibility of up to ‘one year in jail’.
Alayo’s crime not only deprived the cooperative of vital funds but also undermined the trust of its primarily Spanish-speaking immigrant residents. The co-op, which consists of 16 units, had long been a tight-knit community, where Alayo’s actions have caused deep concern among the residents who had trusted him to manage their collective property.
The theft was reported to the ‘Nassau District Attorney’s Office’, which referred the case to the Attorney General’s office for further investigation and prosecution.
Attorney General James also expressed gratitude to the Nassau District Attorney’s Office for their cooperation in bringing the case to justice.
