Former state labor employee gets 20 months in prison in COVID benefits scheme

A former state Department of Labor employee was sentenced Thursday to nearly 2 years in prison for fraudulently obtaining more than $1.6 million in unemployment benefits.

Carl J. DiVeglia III, 36, of Albany, had previously pleaded guilty in U.S. District Court to conspiracy to commit mail fraud. DiVeglia admitted that he and another ex-employee, Wendell Giles, abused their state computer access to create and approve false insurance applications in 2020 and 2021, the U.S. Attorney’s office said. This was part of the COVID-19 pandemic relief program.

DiVeglia admitted to receiving around $225,000 in proceeds from the fraud. He was sentenced to 20 months in prison and 2 years of post-release supervision.

DiVeglia must pay $1,662,819 in restitution and forfeit a $225,000 money judgment.

Giles previously received 3 years in prison for his role in the scheme. Four other people hav been charged. Three Troy residents – Todd Ward, 45, and Christopher Ward, 46, and Jamaine Myers – have pleaded guilty and are awaiting sentencing this fall.

Rocco Resciniti, also of Troy, was sentenced to 3 years of probation.

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.