A St. Albans man was charged with grand larceny for allegedly stealing more than $872,000 that was meant to feed the needy from a Queens charity where he worked as an administrator, Queens District Attorney Melinda Katz announced Friday.
Otto Starzmann, 60, of Anderson Road, was arraigned in Queens Criminal Court on Aug. 21 on charges of grand larceny in the second degree and criminal possession of stolen property for taking funding meant to provide fresh produce to families experiencing food insecurity, according to the Queens DA’s office. Starzmann allegedly spent $429,508 of the money to buy 22 acres of land in upstate Warwick, NY, and more of the charity’s funds to pay for architectural services and to pad his own bank account.
According to the charges and investigation, Starzmann was employed as the chief production officer of River Fund, a charitable organization based in Richmond Hill, 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. According to the charges, between May 10, 2022, and October 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.
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 had no employees.
Once the deposits were in the Foodgate account, Starzmann 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 totaling approximately 22 acres of vacant land; six payments totaling $60,388.97 to an architecture and design firm; and a dozen 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,” Katz said.
Starzmann was arraigned before Queens Criminal Court Judge Diego Freire, who ordered him to return to court on Sept. 4. If convicted, Starzmann faces a potential maximum sentence of five to 15 years in prison.
“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. “I thank the NYPD and my Frauds Bureau for their work on this investigation.”
