EAST HAMPTON, N.Y. — Former East Hampton town officials are facing blistering criticism from a special grand jury report for turning a budget surplus into a nearly $40 million deficit in six years.

Suffolk County District Attorney Tom Spota calls it “a record of fiscal malfeasance rivaling any other town government in the history of the state of New York.”

The 25-page grand jury report found that among the transgressions, officials disregarded basic accounting principles between 2003 and 2009.

On Monday, former town budget director Ted Hults pleaded guilty to official misconduct and securities fraud. He is not facing jail time.

Former town Supervisor William McGintee resigned last year in a deal with prosecutors to avoid prosecution.

McGintee’s lawyer says his client has been a lifelong public servant and is “glad to have this matter behind him.”