A fraud investigator with the New York City Department of Homeless Services has been charged with fraudulently claiming unemployment benefits during the COVID-19 pandemic, according to the Department of Social Services (DSS).
The accused, a 41-year-old Brooklyn resident named Olabanji Otufale, allegedly exploited the information of vulnerable New Yorkers for personal gain during a national emergency, as stated by a DSS spokesperson.
It is alleged that Otufale accessed personal information, including names, dates of birth, Social Security numbers, and photos of at least 10 homeless individuals. He reportedly sold this information to identity theft scammer Mark Lazarre of New Jersey.
Lazarre is accused of using the victims' identities to file fraudulent COVID unemployment claims, taking advantage of the federal CARES Act economic stimulus package that provided over $2 million in emergency relief.
The incidents in question occurred in 2020, prior to Mayor Eric Adams taking office. The accusations surfaced after an indictment was unsealed on Wednesday.
Upon learning of the situation, the DSS took immediate action, stating that termination charges would be pursued if Otufale attempted to return to work. The agency emphasized that the actions of one individual do not reflect the dedication of its staff in serving thousands of households experiencing homelessness.
An internal audit revealed that Otufale had fraudulently accessed the information of 13 sheltered households in the agency's database.
According to records, Otufale had been employed by the city of New York since 2008 and had been with the Department of Homeless Services since 2015. In 2020, he earned a salary of $69,000, which increased to over $84,500 with overtime and additional pay.
Both Otufale and Lazarre face charges of aggravated identity theft and conspiracy to commit wire fraud. Otufale is awaiting arraignment in Brooklyn Federal Court, while Lazarre is currently incarcerated for a federal bank fraud case in New Jersey.
