Fraudulent Scheme Targeting New York State Department of Labor Results in Guilty Plea

A New York man, Michael D’Amato, has pleaded guilty to wire fraud in connection with a scheme to defraud the New York State Department of Labor (NYSDOL) of over $1.2 million. The guilty plea was entered before U.S. District Judge Nelson S. Román in White plains federal court on December 11, 2024. D’Amato faces a maximum sentence of 20 years in prison.

Details of the Scheme

Between approximately March 2020 and September 2021, D’Amato fraudulently obtained unemployment benefits by filing claims using false details, including fabricated employment histories and identities.He submitted these claims thru the NYSDOL’s online system and directed the benefits to various bank accounts he controlled. The scheme exploited the surge in unemployment claims during the COVID-19 pandemic.

How the Fraud Was Perpetrated

D’Amato created false documentation to support his fraudulent claims. This included forging W-2 forms and other employment records. He then used these documents to apply for and receive unemployment benefits to which he was not entitled. The investigation revealed a elegant effort to conceal his activities and launder the stolen funds.

Investigation and Prosecution

The investigation was conducted by the Office of the Inspector General for the U.S. Department of Labor (OIG) and the Federal Bureau of Investigation (FBI). The case is being prosecuted by the White Plains Division of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Jorja N. Knauer and David A. Markewitz are leading the prosecution.

Key Takeaways

• Michael D’Amato pleaded guilty to wire fraud for defrauding the NYSDOL.
• The scheme involved over $1.2 million in fraudulently obtained unemployment benefits.
• The fraud occurred between March 2020 and September 2021, during the COVID-19 pandemic.
• The investigation was a joint effort by the OIG and the FBI.
• D’Amato faces a maximum sentence of 20 years in prison.

Looking Ahead

D’Amato is scheduled to be sentenced on March 13, 2025. This case serves as a reminder of the serious consequences of defrauding government programs, especially during times of national crisis. The U.S. Attorney’s Office continues to prioritize the investigation and prosecution of individuals who exploit unemployment insurance systems for personal gain.

Source: U.S. Department of Justice – Southern District of New York