News 12 is learning about what an official source says is a “large-scale, sophisticated scheme” involving taxpayer money allegedly stolen from the Town of Wallkill.

Town of Wallkill police say the case was referred to the Orange County White Collar Crime Task Force, which is overseen by the District Attorney’s Office and Sheriff’s Office.

A law enforcement source says the scheme involved the theft of a significant amount of money but wouldn’t confirm how much was taken. They say the funds were stolen through multiple transfers between banks and town accounts.

So far, it’s not clear how the transactions may have gone unnoticed or were eventually found, and the official says the investigation is ongoing.

Town of Wallkill Supervisor George Serrano issued a statement online saying, "We are aware of the recent financial fraud attack and can confirm that our investigation is ongoing."

Serrano says all funds involved have been recovered and that they have since implemented the "latest and greatest" in fraud protection technology to prevent a similar attack from occurring.