Earlier today, Olabanji Otufale, a former fraud investigator with the New York City Department of Homeless Services, was sentenced to 27 months in prison. The sentence was handed down by United States District Judge Kiyo A. Matsumoto in federal court in Brooklyn. Otufale was convicted of conspiracy to commit wire fraud and aggravated identity theft. He and his co-conspirator Marc Lazarre had pleaded guilty in July 2024.
The sentencing announcement came from John J. Durham, United States Attorney for the Eastern District of New York; James E. Dennehy, Assistant Director in Charge at the Federal Bureau of Investigation's New York Field Office; and Jocelyn Strauber, Commissioner of the New York City Department of Investigation.
United States Attorney John J. Durham remarked on the case: “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.” He added that "Otufale betrayed the public trust and conspired to use his access for illicit financial gain."
FBI Assistant Director Dennehy stated: “Olabanji Otufale exploited his position within the Department of Homeless Services to steal the identities of homeless individuals." He emphasized that such actions violate trust and privacy expectations placed on local agencies responsible for sensitive information.
DOI Commissioner Jocelyn E. Strauber noted: “The defendant...had a duty to protect DHS and the vulnerable New Yorkers it serves from fraud.” She stressed that misuse of city positions for personal profit would be punished.
In 2020, Otufale conspired with others to use stolen personal identifying information from over ten homeless individuals to apply fraudulently for unemployment insurance benefits without their consent or knowledge. At that time, he held a position where he was supposed to ensure applicants' eligibility for services like housing in homeless shelters.
Otufale misused access to departmental databases containing names, social security numbers, and dates of birth provided by those seeking services. This information was then texted to Marc Lazarre who applied online for unemployment benefits using these identities. The fraudulent gains were intended to be split between Otufale and Lazarre.
Marc Lazarre is set for sentencing on March 4, 2025.
This case is being managed by the Public Integrity Section with Assistant United States Attorneys Sara K. Winik, Laura Zuckerwise, Katherine P. Onyshko leading prosecution efforts along with Paralegal Specialist Nadya Osman.