ALBANY, NEW YORK – In a shocking turn of events, Carl J. DiVeglia III, age 36, of Albany, has been sentenced to 20 months in prison for engaging in a fraudulent scheme to obtain more than $1.6 million in unemployment insurance benefits by abusing his position with the New York State Department of Labor (NYSDOL).
According to officials, DiVeglia and another former NYSDOL employee, Wendell Giles, abused their state computer access to create and approve false unemployment insurance applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program. DiVeglia admitted responsibility for over $1.6 million in losses to NYSDOL and to personally receiving approximately $225,000 in fraud proceeds.
United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after DiVeglia is released from prison. Judge Suddaby also ordered DiVeglia to pay $1,662,819 in restitution to the State of New York and to forfeit a $225,000 money judgment to the United States.
This is not the first time DiVeglia has been in trouble. Four related defendants – Todd Ward, a/k/a “Fats,” age 45, of Troy, New York; Christopher Ward, a/k/a “Reek,” age 46, of Troy; Rocco Resciniti, a/k/a “Rock,” age 50, of Albany; and Jamaine Myers, age 46, of Troy – have also pled guilty to fraud charges for their involvement in DiVeglia’s scheme. Resciniti was sentenced to three years of probation on July 31, 2024, and the remaining defendants are scheduled to be sentenced in the fall.
The FBI and USDOL-OIG investigated these cases, with assistance from the NYSDOL Office of Special Investigations. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian are prosecuting the cases.
This case highlights the importance of accountability and transparency in government agencies. It is essential that those who abuse their positions for personal gain are held accountable for their actions. The sentence handed down to DiVeglia sends a strong message that such behavior will not be tolerated.
Related Federal Cases
- Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · New York
- Sark Wire Corporation, PPP Loan Fraud, Albany NY, 2020 · New York
- James Pavlounis, Social Security Administration Fraud and Tax Evasi… · Texas
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
- James Pavlounis, Social Security Disability Benefits Fraud, New Roc… · Washington
Key Facts
- State: New York
- Category: White Collar Crime,Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News