A former fraud investigator with the New York City Department of Homeless Services has been handed down a 27-month prison sentence for exploiting the identities of homeless individuals in a wire fraud and aggravated identity theft scheme. According to a statement released by the U.S. Attorney’s Office for the Eastern District of New York, Olabanji Otufale and co-conspirator Marc Lazarre pleated guilty last July, with the former using his privileged access to a database to execute his crimes against some of the city’s most vulnerable.
U.S. District Judge Kiyo A. Matsumoto determined that Otufale, in his role as a fraud investigator, was tasked with verifying the qualifications of applicants seeking homeless services from the Department. Regrettably, he chose instead to betray the trust placed in him and to engage in criminal activities which ultimately sought to deprive those he was meant to protect. According to a statement obtained by the U.S. Attorney's Office, Otufale was responsible for "ensuring individuals who applied for homeless services—such as housing in homeless shelters—were qualified to receive services from the Department." Yet he instead opted to use his position to steal personal information and partake in a fraudulent unemployment benefits scheme.
As outlined by the U.S. Attorney’s Office, the fraud unfolded in the fall of 2020 when Otufale began to conspire with Lazarre to purloin personal identifying details - names, social security numbers, dates of birth - and use this information to illegitimately file for unemployment insurance benefits. Text messages sent by Otufale to Lazarre provided the necessary information for filing these claims, thus initiating the disbursement of funds that were never meant for their pockets. The continued repercussions of this crime mean Lazarre is now awaiting his own sentencing come March 4.
Condemnations from multiple federal offices highlighted the gravity of Otufale’s actions. FBI Assistant Director in Charge James E. Dennehy expressed no tolerance for such exploitation by public workers, declaring, "Olabanji Otufale exploited his position within the Department of Homeless Services to steal the identities of homeless individuals and furtively reaped their allocated social services benefits." Similarly, DOI Commissioner Jocelyn E. Strauber emphasized the breach of duty by the defendant, noting in a statement obtained by the U.S. Attorney’s Office, "The defendant, a City fraud investigator with the Department of Homeless Services, had a duty to protect DHS and the vulnerable New Yorkers it serves from fraud. Instead, he used his access and position to steal personal information of applicants for social services, in a scheme to illegally obtain unemployment benefits." The proactive efforts by law enforcement emphasize their commitment to upholding justice and protecting the public from such internal corruption.
Assistant United States Attorneys Sara K. Winik, Laura Zuckerwise and Katherine P. Onyshko, along with Paralegal Specialist Nadya Osman, are recognized for their roles in steering the prosecution, underscoring the extensive collaborative undertaking among various agencies to address corruption and uphold the integrity of public service.
