By Forum Staff
A former Richmond Hill food pantry administrator has been charged with stealing $872,440 from the nonprofit organization, Queens District Attorney Melinda Katz said on Friday.
Otto Starzmann, 60, of St. Albans, was arraigned Thursday night on charges of grand larceny in the second degree and criminal possession of stolen property in the second degree.
According to the charges, Starzmann was employed as the chief production officer of River Fund, a charitable organization based out of a building on Lefferts Boulevard, and his responsibilities included securing grants and placing large food orders. The organization operates a food pantry and makes food deliveries to the needy. Unbeknownst to River Fund, Starzmann had formed a company called Foodgate Inc.
Between May 10, 2022, and Oct. 26, 2022, Starzmann submitted five invoices from Foodgate to River Fund totaling $872,440 to secure advance payments for future deliveries of prepaid fresh produce. River Fund then paid Foodgate to grow an assortment of produce, including green beans, corn and squash, and deliver the vegetables to the organization’s warehouse.
Photo Courtesy of DA Katz
Starzmann stands accused of swiping the money “instead of paying farmers to fill his employer’s warehouse with healthy food for the needy and vulnerable in our community,” DA Katz said.
According to investigators, there were no food deliveries or parcels in the organization’s warehouse matching the invoices. None of the prepaid farm produce was ever delivered.
It was later discovered that the $872,440 paid to Foodgate went to an Evolve Bank and Trust account, where Starzmann was the sole account owner. The company also had no employees.
Once the deposits were in the Foodgate account, the defendant allegedly transferred approximately $753,705 into a second Evolve bank account also tied to him. At least 20 withdrawals were made from the account including two transactions totaling $429,508.20 to a law firm for a closing payment balance and additional down payment on three real estate parcels in Warwick, N.Y., totaling approximately 22 acres of vacant land; six payments totaling $60,388.97 to an architecture and design firm; and 12 cash withdrawals totaling $70,480.94. An additional $77,000 in cash was also sent to Starzmann’s personal bank accounts.
“Instead of paying farmers to fill his employer’s warehouse with healthy food for the needy and vulnerable in our community, the defendant is accused of stealing the charitable funds. He is alleged to have violated the professional trust of his colleagues and used more than $429,000 to buy property for himself,” Katz said.
If convicted, Starzmann faces a potential maximum of five to 15 years in prison.
