A New York City Department of Homeless Services fraud investigator, Olabanji Otufale, has been charged with fraudulently claiming unemployment benefits during the COVID-19 pandemic. The Department of Social Services (DSS) confirmed that Otufale allegedly accessed the personal information of at least 10 homeless individuals and sold it to identity theft scammer Mark Lazarre of New Jersey. Lazarre then used this information to file COVID unemployment claims, taking advantage of the federal CARES Act economic stimulus package to receive more than $2 million in emergency relief. These actions were conducted in 2020, before Mayor Eric Adams took office. An indictment unsealed by the New York Daily News revealed the accusations and prompted the immediate termination of Otufale’s employment at the DSS.
An internal audit of the agency’s database discovered that Otufale had fraudulently accessed the information of 13 households in shelter, further implicating him in the scheme. Otufale had been working with the city of New York since November 2008 and had been with DHS since 2015, earning a salary of $69,000 in 2020. Records show that he took home over $84,500 after overtime and other pay that year. Both Otufale and Lazarre were indicted on charges of aggravated identity theft and conspiracy to commit wire fraud. Otufale is awaiting arraignment in Brooklyn Federal Court, while Lazarre, who has a history of identity theft convictions, is currently incarcerated for a federal bank fraud case in New Jersey.
The DSS condemned Otufale’s actions as exploiting vulnerable New Yorkers during a national emergency for personal gain, emphasizing that they do not reflect the hard work of the agency’s staff in serving and supporting households experiencing homelessness. The agency immediately instated termination charges against Otufale to prevent his return to work. Otufale’s alleged involvement in the unemployment benefits fraud targeted individuals already in precarious situations, highlighting the importance of safeguarding personal information and preventing such exploitation. The indictment and subsequent legal proceedings shed light on the dangers of identity theft and the need for robust measures to combat such fraudulent activities.
The collaboration between Otufale and Lazarre in perpetrating identity theft and fraud involving COVID-19 relief funds underscores the potential vulnerabilities in emergency aid programs. The misuse of personal information for financial gain not only harms the victims of identity theft but also undermines the integrity of government assistance initiatives aimed at mitigating the impact of the pandemic. The indictment of both individuals on serious charges reflects the authorities’ commitment to holding perpetrators of fraud and exploitation accountable for their actions. The case serves as a cautionary tale about the risks of manipulating emergency resources for personal enrichment, reinforcing the importance of ethical conduct and accountability in times of crisis.
Federal authorities have pursued legal action against Otufale and Lazarre for their alleged roles in the unemployment benefits fraud scheme, seeking to uphold the rule of law and protect the rights of the victims. Otufale’s position as a fraud investigator within the Department of Homeless Services raises concerns about the potential for insider threats and underscores the need for robust oversight and monitoring of personnel with access to sensitive information. The indictment and ongoing legal proceedings will likely lead to increased scrutiny of security protocols and risk mitigation strategies within government agencies to prevent similar incidents in the future. By prosecuting individuals involved in identity theft and fraud schemes, law enforcement aims to deter such criminal activities and safeguard public trust in government institutions and emergency relief programs.
