Fraud investigator for NYC Dept. of Homeless Services charged with COVID fraud

A fraud investigator for the New York City Department of Homeless Services stole homeless people’s personal information during the COVID pandemic, then sold that info to an identity theft scammer, federal authorities allege.

Brooklyn resident Olabanji Otufale, 41, abused his position by accessing names, dates of birth, Social Security numbers and photos of more than 10 city homeless people, according to an indictment unsealed on Wednesday.

He then peddled that info to New Jersey resident Mark Lazarre, who in turn stole the victims’ identities so he could file COVID unemployment claims with the state Department of Labor, the feds allege.

Lazarre —who has a history of identity theft convictions and at one point took out a lease in a dead person’s name, federal authorities allege — is currently jailed for a federal bank fraud case in New Jersey.

In one instance, on Oct. 6, 2020, Otufale sent Lazarre a screenshot of a state ID card, complete with personal information, as well as a picture of a computer screen with more info, including that person’s Social Security number, according to the indictment.

Lazarre then filed for unemployment insurance in the victim’s name, getting a KeyBank debit card sent to him by the Department of Labor, the feds allege.

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, the feds allege.

In 2020, the year of his alleged crime, Otufale earned a roughly $69,000 salary in his DHS job, and took home more than $84,500 after overtime and other pay, records show.

Last year, he brought home $151,000, which included more than $58,000 in overtime, according to payroll data.

He started working for DHS in 2015, records show. Agency representatives could not be reached for comment.

Both men were indicted on aggravated identity theft — which carries a two-year mandatory minimum sentence — and conspiracy to commit wire fraud.

Otufale awaits arraignment in Brooklyn Federal Court, while Lazarre remains held on the New Jersey charges.

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