Defendants in Brooklyn Federal Court plead guilty to stealing identities of homeless

Fraud investigator and accomplice used NYC data to swindle benefits

July 17, 2024 Robert Abruzzese, Courthouse Editor

U.S. Attorney Breon Peace addresses the media regarding the guilty pleas of two men who stole the identities of homeless individuals to commit unemployment fraud. Photo by Peter K. Arifye/AP

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A former fraud investigator and his accomplice pleaded guilty to conspiracy charges to commit wire fraud and aggravated identity theft. They admitted to a scheme that involved stealing personal information from homeless individuals to apply for unemployment benefits fraudulently.

The investigator used his access to city databases to steal names, social security numbers and dates of birth from homeless individuals. He then passed this information to his co-conspirator, who used it to file fraudulent unemployment claims, planning to split the illicit proceeds.

The defendants, 41-year-old Olabanji Otufale of Brooklyn and 39-year-old Marc Lazarre of Secaucus, New Jersey, each face up to 32 years in prison at sentencing.

“The defendants shamefully stole vulnerable homeless victims’ personal identifying information for their gain,” U.S. Attorney Breon Peace said. “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.”

Otufale, a fraud investigator with the New York City Department of Homeless Services, and his accomplice, Lazarre, pleaded guilty in federal court in Brooklyn to conspiracy to commit wire fraud and aggravated identity theft.

Otufale admitted that he used his access to the Department of Homeless Services database to steal personal identifying information, such as names, social security numbers and dates of birth, from homeless individuals. He then sent this information to Lazarre, who used it to apply for unemployment benefits in the names of the homeless victims. They planned to split all of their ill-gotten gains.