Earlier today, in a federal court in Brooklyn, Olabanji Otufale, a former fraud investigator with the New York City Department of Homeless Services, was sentenced to 27 months in prison. United States District Judge Kiyo A. Matsumoto handed down the sentence for charges of conspiracy to commit wire fraud and aggravated identity theft. Otufale and his co-conspirator Marc Lazarre had pleaded guilty in July 2024.
The sentencing was announced by John J. Durham, United States Attorney for the Eastern District of New York; James E. Dennehy, Assistant Director in Charge of the Federal Bureau of Investigation's New York Field Office; and Jocelyn Strauber, Commissioner of the New York City Department of Investigation.
“The defendant abused his position of trust as a fraud investigator to access and steal vulnerable homeless victims’ personal identifying information for his personal benefit,” stated United States Attorney John J. Durham. He emphasized that Otufale's actions were a betrayal of public trust intended for illicit financial gain.
FBI Assistant Director in Charge Dennehy added that “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."
Jocelyn E. Strauber commented on Otufale's breach of duty: “The defendant... had a duty to protect DHS and the vulnerable New Yorkers it serves from fraud." She noted that today's sentence underscores accountability for those misusing city positions for personal profit.
In fall 2020, Otufale conspired with others to steal personal identifying information from more than ten homeless individuals. This stolen data was used without consent to apply for unemployment insurance benefits fraudulently.
As a fraud investigator at the time, Otufale accessed departmental databases meant to verify service eligibility but instead used them to commit identity theft. The stolen information was sent via text message to Marc Lazarre, who applied online for unemployment benefits using these identities. The fraudulent benefits were split between Otufale and Lazarre.
Lazarre is scheduled for sentencing on March 4, 2025.
The case is being prosecuted by Assistant United States Attorneys Sara K. Winik, Laura Zuckerwise, and Katherine P. Onyshko from the Public Integrity Section with assistance from Paralegal Specialist Nadya Osman.
