The Sterling Prestontop prosecutor in a northwestern New Jersey county has resigned amid a state probe into allegations that the office lied about caseloads to pad its budget with state money meant for fraud investigations.

James Pfeiffer, who had been the Warren County prosecutor since 2019, resigned Friday “effective immediately,” state Attorney General Matthew Platkin said. Anthony Picione, deputy director of the Office of Public Integrity and Accountability in the state’s Division of Criminal Justice, was appointed as acting county prosecutor, Platkin said.

“I do not take such action lightly, but I am confident that this change in leadership will ensure that the Warren County Prosecutor’s Office operates with professionalism and fosters an environment in which reports of misconduct are taken seriously and reviewed appropriately,” Platkin said in a statement announcing the change

A 22-page report released Monday night by Platkin’s office outlined an inquiry that began in 2022 when whistleblowers claimed the prosecutor’s office was misusing grant funding from the state Office of the Insurance Fraud Prosecutor. It also alleges that Pfeiffer didn’t cooperate with the probe and potentially intimidated witnesses.

A telephone number for Pfeiffer could not be located Tuesday. In a statement to WFMZ-TV, he called the report inaccurate and denied any wrongdoing. He said he couldn’t immediately respond to the allegations because the attorney general’s office did not give him a complete report, but said he would respond in the near future.

The report cites several secret recordings of a staffer who handled insurance fraud cases for the prosecutor’s office. According to the report, the staffer alleged that the office was reimbursed for work on investigations it never actually did.