Description: Albany, New York criminal defense lawyer represented the Defendant charged with engaging in a fraudulent scheme to obtain more than $800,000 in unemployment insurance benefits by abusing his position with the NYSDOL.

Wendell Giles, age 53, of Albany, admitted that he and another former NYSDOL employee, Carl J. DiVeglia III, abused their state computer systems access to create and approve false unemployment insurance applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program.

Giles recruited relatives, friends and friends-of-friends to submit false benefits applications over the phone to DiVeglia after Giles had instructed them to lie in response to eligibility questions. Giles and DiVeglia then took a share of the benefits paid by NYSDOL on the false claims. Giles used his share to enrich himself, including by purchasing a three-wheeled motorcycle. In text messages, DiVeglia suggested a vanity license plate for Giles’s new vehicle, “TY PUA,” which Giles understood to mean “Thank You Pandemic Unemployment Assistance.” Giles responded, “Lol.” Giles had been employed as a Senior Employment Security Clerk, and DiVeglia as a Labor Services Representative.

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

18:1349, 1341: Conspiracy to Commit Mail Fraud w/Forfeiture Allegation

Outcome: The Defendant is sentenced on Count 1 of the Indictment to a term of imprisonment of 36 months and a term of supervised release 2 years with standard and special conditions of supervised release imposed. The Court recommends to the BOP, if appropriate, that the Defendant be housed at FCI McKean in Lewis Run, Pennsylvania. The Defendant shall surrender for service of sentence at the facility designated by BOP before 2 p.m. on December 19, 2023. Special Assessment in the amount of $100.00 imposed and due immediately. Defendant shall consent to the entry of forfeiture to the items outlined in the Preliminary Order of Forfeiture. Restitution in the amount of $826,530 is outstanding. Of this amount, $583,150 shall be paid jointly with co-conspirator Carl J. DiVeglia III. This restitution is due immediately, and to be paid as articulated in court. The interest requirement is waived. Defendant does not have the ability to pay a fine. Payments shall be applied in the following order: (1) assessment, (2) restitution principal, (3) restitution interest, (4) fine principal, (5) fine interest, (6) community restitution, (7) JVTA Assessment, (8) penalties, and (9) costs, including cost of prosecution and court costs.

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