NYC Homeless Services fraud investigator accused of COVID fraud
A New York City Department of Homeless Services fraud investigator has been charged with fraudulently claiming unemployment benefits during the COVID-19 pandemic, the Department of Social Services (DSS) confirmed.
Olabanji Otufale, 41, of Brooklyn, is accused of "exploiting the information of vulnerable New Yorkers during a national emergency for personal gain" a statement from a DSS spokesperson said.
Otufale is accused of accessing at least 10 homeless people's names, dates of birth, Social Security numbers and photos. He then allegedly sold the information to identity theft scammer Mark Lazarre of New Jersey, federal authorities allege.
Lazarre is accused of using the victims' identifies to file COVID unemployment claims with the state Department of Labor, abusing the federal CARES Act economic stimulus package that provided more than $2 million in emergency COVID relief.
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New York City Mayor Eric Adams' administration says this all occurred in 2020, prior to Adams taking office. The accusations came to light after an indictment unsealed Wednesday was obtained by the New York Daily News.
"As soon as the agency was alerted, we immediately instated termination charges should this individual attempt to return to work," the DSS statement read. "The actions of this individual are in no way a reflection of the hard work of countless staffers who show up every day and honor the agency’s mission to serve and support tens of thousands of households experiencing homelessness."
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An internal audit of the agency's database shows Otufale fraudulently accessed the information of 13 households in shelter, DSS said.
A LinkedIn profile with Otufale's name says he has been working with the city of New York since November 2008. Records obtained by the NY Daily News say he has been with DHS since 2015, and he had a salary of $69,000 in 2020, when he took home more than $84,500 after overtime and other pay.
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Both Otufale and Lazarre were reportedly indicted on aggravated identity theft and conspiracy to commit wire fraud charges. Otufale awaits arraignment in Brooklyn Federal Court.
Federal authorities say Lazarre has a history of identity theft convictions. He is currently in jail for a federal bank fraud case in New Jersey, the Daily News reported.