Wendell Giles, Unemployment Insurance Fraud, New York 2023

ALBANY, NEW YORK – Wendell Giles, a 53-year-old former New York State Department of Labor employee, was sentenced to 36 months in prison for his role in a massive unemployment insurance fraud scheme.

Giles, of Albany, was found guilty of conspiracy to commit mail fraud and admitted to using his position with the NYSDOL to create and approve false unemployment insurance applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program.

As part of his scheme, Giles recruited relatives, friends, and friends-of-friends to submit false benefits applications over the phone to his co-conspirator, Carl J. DiVeglia III. Giles and DiVeglia then took a share of the benefits paid by NYSDOL on the false claims, with Giles using his share to enrich himself, including purchasing a three-wheeled motorcycle.

Giles admitted responsibility for $826,530 in losses to pandemic-related UI benefits programs administered by the state and has agreed to pay full restitution to NYSDOL. DiVeglia previously pleaded guilty to related charges and also agreed to pay restitution.

United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after Giles is released from prison. Judge Suddaby also ordered Giles to pay $826,530 in restitution to the State of New York and to forfeit a $100,000 money judgment to the United States.

The FBI and USDOL-OIG investigated this case, with assistance from the NYSDOL Office of Special Investigations. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian prosecuted this case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.

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