TROY, NEW YORK – Todd Ward, better known as ‘Fats,’ has admitted to his role in a massive unemployment insurance fraud scheme that siphoned $152,086 from the New York State Department of Labor (NYSDOL). The 45-year-old Troy resident faced charges for conspiring with Carl J. DiVeglia III to obtain benefits under another’s identity.
The scandal was exposed when Ward provided DiVeglia with personal information to file fraudulent claims. The NYSDOL unwittingly paid out the staggering sum, part of which was federal funds allocated in response to the COVID-19 pandemic. In a plea deal, Ward agreed to reimburse the State of New York for the entire amount.
DiVeglia, who has since pleaded guilty, is responsible for an additional $1.6 million in fraudulent claims within the same scheme. Ward’s three co-defendants – his brother Christopher, Rocco Resciniti, and Jamaine Myers – have all confessed to related offenses.
Ward is staring down a potential 20-year sentence, a fine of up to $250,000, and supervised release for as long as three years. His sentencing is scheduled for November 14, 2024, before U.S. District Judge Glenn T. Suddaby.
The FBI and USDOL-OIG are leading the investigation into this case, with support from NYSDOL’s Office of Special Investigations. Assistant U.S. Attorneys Joseph S. Hartunian and Joshua R. Rosenthal are handling the prosecution.
Established in May 2021, the COVID-19 Fraud Enforcement Task Force is a joint effort to combat pandemic-related fraud. More information on the Department of Justice’s response to fraud during the pandemic can be found at https://www.justice.gov/coronavirus.
Victims or witnesses with information regarding COVID-19 fraud can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721, or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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