A fraud investigator with the New York City Department of Homeless Services and a co-conspirator pleaded guilty on Monday to stealing homeless New Yorkers' identities and fraudulently applying for unemployment benefits and keeping the proceeds, the U.S. Attorney's Office for the Eastern District of New York announced.
Olabanji Otufale and Marc Lazarre pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft on Monday, as jury selection in their trial was set to begin. They each face a minimum of two years in prison, up to a maximum of 32 years.
At the time of the scheme, which began in the fall of 2020, Otufale was a fraud investigator with the New York City Department of Homeless Services. His job was to ensure those applying for homeless services such as housing in shelters were eligible to receive benefits.
"The defendants shamefully stole vulnerable homeless victims' personal identifying information for their own personal gain," U.S. Attorney Breon Peace said in a statement. "Instead of investigating fraud, as the City of New York trusted Otufale to do, the defendants abused Otufale's position and access to sensitive data to commit fraud. That the defendants face a mandatory prison sentence of two years should serve as a deterrent message to others who think about corruptly stealing identities and taxpayer funds."
According to court filings, the defendants conspired to steal identifying information from homeless individuals who provided it when applying for services. Otufale and Lazzare used the information to apply for unemployment insurance benefits in their names without their knowledge or consent, and split the fraudulent benefits they received.
"Leveraging his position within the New York City Department of Homeless Services, Olbanji Otufale stole homeless individuals' personal information and enlisted a co-conspirator to use these sensitive details for his own financial benefit. The defendants' actions exemplify the harmful abuses of power the FBI is dedicated to preventing, and we applaud the efforts of our office and the Department of Investigation in bringing about this verdict," said FBI Acting Assistant Director in Charge Curtis.
--with reporting by TMX
