ALBANY — A former state Department of Labor employee pleaded guilty to federal criminal charges Thursday, admitting that he and a co-worker used their computer access privileges and inside knowledge to steal more than $1.6 million in pandemic-related unemployment insurance benefits.
Wendell C. Giles, 51, who has ties to the Buffalo area but lives in the Capital Region, had conspired in the theft scheme with 33-year-old Carl J. DiVeglia III of Albany, who pleaded guilty in April. Both pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft after admitting responsibility for $1.6 million in losses.
DiVeglia received $225,000 from the scheme while Giles netted more than $826,530, according to court records.
Giles admitted recruiting relatives, friends and other acquaintances to submit false unemployment insurance applications over the phone to DiVeglia in the 15-month-long scheme that began in May 2020 and ended a year ago.
Giles had instructed the applicants to lie in response to eligibility requirements and they both shared in the proceeds of the fraudulent payments. They also used an ad on Craigslist to recruit participants in the scheme.
Federal authorities said Giles and DiVeglia used the money for personal enrichment, including Giles’ purchase of a 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...
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