A former city Department of Homeless Services fraud investigator and a scammer from New Jersey have pleaded guilty to stealing homeless people’s IDs in a scheme to apply for COVID unemployment money.
Brooklyn resident Olabanji Otufale, 41, who worked for the DHS, and career identity thief Marc Lazarre, 39, both face at least a mandatory minimum of two years behind bars after pleading guilty in Brooklyn Federal Court.
They pleaded guilty to aggravated identity theft and conspiracy to commit wire fraud before Judge Kiyo Matsumoto Monday — the same day jury selection was supposed to begin in their trial. They’re slated to be sentenced in October.
Otufale accessed names, dates of birth, Social Security numbers and photos of more than 10 city homeless people, according to an indictment unsealed in May.
He then sold that info to Lazarre, who in turn stole the victims’ identities so he could file COVID unemployment claims with the state Department of Labor.
In one instance, on Oct. 6, 2020, Otufale sent Lazarre a screenshot of a person’s state ID card and a picture of a computer screen with more info, including that person’s Social Security number, according to the indictment. Lazarre filed for unemployment insurance in the victim’s name, getting a KeyBank debit card sent to him by the Department of Labor.
Otufale and Lazarre were taking advantage of the federal CARES act, an economic stimulus package set up in the early days of the pandemic that provided more than $2 trillion in emergency COVID relief.
Lazarre has a history of identity theft and forgery convictions dating back to 2015 — all of which would have been fair game if he took the stand in his own defense, the judge ruled.
At one point he took out a lease in a dead person’s name, according to the feds. He is currently jailed in a pending federal bank fraud case in New Jersey.
“The defendants shamefully stole vulnerable homeless victims’ personal identifying information for their own personal 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.
Otufale started working for DHS in 2015, records show. An agency spokeswoman said in May that DHS ” immediately instated termination charges should this individual attempt to return to work” and described the crime as “unconscionable and downright despicable.”
Otufale’s lawyer didn’t return a message seeking comment Monday, and Lazarre’s lawyer declined comment.