Criminal Complaint — United States v. Christoper Dominic Niebel (No. 2:21-cr-20553, E.D. Mich.)

Summary

A criminal complaint (form AO 91) with a supporting affidavit in United States of America v. Christopher Dominic Niebel, Case 2:21-cr-20553-MAG-APP (complaint case 2:21-mj-30141), in the U.S. District Court for the Eastern District of Michigan, filed 03/23/21 as ECF No. 1. It charges wire fraud under 18 U.S.C. § 1343 and aggravated identity theft under 18 U.S.C. § 1028A for conduct from March 2020 to August 2020 in Wayne County. The affidavit of Special Agent Gregory D. Waterson of the Department of Labor Office of Inspector General describes the CARES Act unemployment programs and states that the Michigan UIA traced over 100 UI claims and accounts to an internet address whose subscriber was Niebel, linked to the business Tax Guy Chris. The complaint was sworn before Magistrate Judge Kimberly Altman on March 23, 2021.

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AO 91 (Rev. 11/11) Criminal Complaint Agent: Gregory Waterson Telephone: (313) 515-8996

UNITED STATES DISTRICT COURT

for the

Eastern District of Michigan

United States of America Case: 2:21—mj-30141
v. Assigned To : Unassigned
Christoper Dominic Niebel Case No. Assign. Date : 3/23/2021
Description: U.S. V. NIEBEL
(CMP)(MEV)
CRIMINAL COMPLAINT

I, the complainant in this case, state that the following is true to the best of my knowledge and belief.

On or about the date(s) of March 2020 to August 2020 in the county of Wayne in the
Eastern District of Michigan , the defendant(s) violated:
Code Section Offense Description
18 U.S.C § 1343 Wire Fraud
18 U.S.C § 1028 A Aggravated Identity Theft

This criminal complaint is based on these facts:
Please see attached affidavit

Continued on the attached sheet. Digitally signed by Gregory Waterson
Fa G regory Wate rson Date: 2021.03.18 08:37:56 -04'00'

Complainant’s signature

Gregory Waterson - Special Agent DOL-OIG

Printed name and title

Sworn to before me and signed in my presence
and/or by reliable electronic means. | / - A Abbe.

Date: March 23, 2021

Judge’s signature

City and state: Detroit, MI Kimberly Altman - U.S . Magistrate Judge

Printed name and title
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.2 Filed 03/23/21 Page 2 of 17

AFFIDAVIT INSUPPORT OF A CRIMINAL COMPLAINT

I, Gregory D. Waterson, being duly sworn, depose and state the following:

INTRODUCTION AND AGENT BACKGROUND

1. Iam a Special Agent for the United States Department of Labor, Office
of Inspector General (DOL-OIG), and have been so employed since December
2015. Prior to this assignment, I was a Special Agent with the United States Secret
Service (USSS) for seven years. I am currently assigned to the Detroit Field Office
of the DOL-OIG. As an USSS and DOL-OIG Special Agent, I have conducted
numerous investigations involving violations of federal law, including, but not
limited to, violations of Titles 18 and 29 of the United States Code. Iam an
“investigative or law enforcement officer of the United States” within the meaning
of 18 U.S.C. § 2510(7) and empowered by law to conduct investigations and make
arrests of offenses enumerated in Title 18 and Title 29 of the United States Code.

I have conducted approximately eight investigations related to unemployment
insurance fraud schemes. I have assisted in investigating approximately fifteen
unemployment insurance fraud schemes.

2. This is joint investigation conducted by the DOL-OIG, the Internal
Revenue Service — Criminal Investigation, the United States Secret Service, and

the State of Michigan Unemployment Insurance Agency (Michigan UIA).
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.3 Filed 03/23/21 Page 3 of 17

PURPOSE OF AFFIDAVIT

3. This affidavit is made in support ofa criminal complaint and arrest
watrant for CHRISTOPHER DOMINIC NIEBEL. Based on the information set forth in
this affidavit, I submit that there is probable cause to believe that Niebel executeda
scheme to defraud and obtain state and federally funded unemployment benefits by
means of false and fraudulent pretenses and representations and did thereby
commit several federal crimes, including but not limited to wire fraud(18 U.S.C. §
1343) and aggravated identity theft (18 U.S.C. § 1028A).

4. This affidavit is submitted for the limited purpose of securing a criminal
complaint and arrest warrant; therefore, this affidavit does not contain every fact
that Ihave learned during the course of this investigation, but rather only those
sufficient to establish probable cause to believe that CHRISTOPHER DOMINIC
NIEBEL committed the crimes referred to above in Paragraph 3. The information
contained in this affidavit is based upon my personal knowledge, training, and
experience, as well as the combined knowledge, training, and experience of other
law enforcement officers and agents with whom I have had discussions.

UNEMPLOYMENT BENEFITS GENERALLY

5. The Social Security Act of 1935 created the federal-state unemployment
insurance (UI) system. The system provides benefits to individuals who are

unemployed through no fault of their own. Unemployment insurance payments, or
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.4 Filed 03/23/21 Page 4 of 17

unemployment benefits, are intended to provide temporary financial assistance to
unemployed workers who meet certain eligibility requirements.

6. State unemployment taxes on private employers provide the funding for
regular unemployment benefits. Federal and state unemployment taxes on private
employers provide the funding for extended unemployment benefits. And federal
unemployment taxes on private employers provide the funding to pay the
administrative costs of the UI system and to enable the federal government to loan
funds to underfunded state UI agencies.

7. The UI system is administered by the U.S. Department of Labor and state
UI agencies. In Michigan, the relevant state UI agency is the Michigan
Unemployment Insurance Agency (Michigan UIA).

PANDEMIC-RELATED UNEMPLOYMENT BENEFITS

8. The coronavirus pandemic significantly slowed economic activity in the
United States and resulted in unemployment levels that substantially exceeded
normal levels of unemployment. The federal government addressed this situation
by enacting laws, beginning in March 2020, designed to support the operations of
state unemployment systems and provide additional federally funded
unemployment benefits. The Families First Coronavirus Response Act (FFCRA)

was signed into law on March 18, 2020. Division D of the FFCRA provided
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.5 Filed 03/23/21 Page 5 of 17

financial assistance and administrative support to state Ul agencies to help them
respond to the additional demands caused by the coronavirus pandemic.

9. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was
signed into law on March 27, 2020. The CARES Act provided additional federal
funding for unemployment benefits for workers affected by the pandemic,
including workers who were not ordinarily eligible for unemployment benefits.
One CARES Act program is the Federal Pandemic Unemployment Compensation
(FPUC) program. The FPUC program allowed eligible individuals who were
collecting certain UI benefits, including regular UI benefits, to receive an
additional $600 in federally funded benefits per week for any period of
unemployment extending through July 31, 2020. The FPUC program was revived
by Congress on December 27, 2020, through the Continued Assistance for
Unemployed Workers Act of 2020 (Continued Assistance Act) and provides $300
in unemployment benefits per week for any period of unemployment from the
week ending January 2, 2021, through the week ending March 13, 2021.

10. Another CARES Act program is the Pandemic Emergency
Unemployment Compensation (PEUC) program, which provides up to 13 weeks of
additional federally funded benefits to those who have exhausted benefits under
regular unemployment compensation or other programs for any period of

unemployment extending through the week ending December 26, 2020. The PEUC
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.6 Filed 03/23/21 Page 6 of 17

program was extended by the Continued Assistance Act to cover any period of
unemployment from the week ending January 2, 2021, through the week ending
March 13, 2021.

11. The third CARES Act unemployment-benefit program is the Pandemic
Unemployment Assistance (PUA) program, which provides federally funded
benefits to self-employed workers, independent contractors, and others not
ordinarily eligible for unemployment benefits. Like the PEUC program, the PUA
program was set to expire the week ending December 26, 2020, but was extended
by the Continued Assistance Act to cover any period of unemployment from the
week ending January 2, 2021, through the week ending March 13, 2021.

THE UNEMPLOYMENT-BENEFEFIT PROCESS

12. Normally (in the absence of fraud), an unemployed worker initiates an
unemployment insurance (UI) claim. This can be accomplished by submitting a
claim in person, over thetelephone, or online. Currently, the overwhelming
majority of UI claims are filed online. In order to be eligible for UI benefits, the
worker must demonstrate a certain level of earnings in the several quarters
immediately preceding the beginning of his or her unemployment. The amount of
unemployment benefits that a UI claimant might be eligible for depends on a

variety of factors, including but not limited to the length of his or her previous
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.7 Filed 03/23/21 Page 7 of 17

employment, the amount of wages he or she earned, and the state in which he or
she resides.

13. Claims filed online are usually filed from a desktop or laptop computer.
Ordinarily, this means that all contact between the claimantand state UI agency
will be electronic. Information retained by state UI agencies about contacts
between those agencies and UI claimants includes the Internet protocol (IP)
address associated with the electronic devices used by claimants to file or
supplement their claims or access their UJ accounts. An IP address (under IP
version 4 (IPv4)) is a unique series of four numbers, each in the range 0-255,
separated by periods (e.g., 121.56.97.178), that is used to identify computers and
other electronic devices connected to the Intemet. Ordinarily, the IP address
assigned by an Intemet service provider (ISP) to a subscriber is assigned to the
subscriber’s router. A router is the hub of a wireless (Wi-Fi) home computer
network, enabling a subscriber to connect multiple electronic devices in his or her
house or apartment (e.g., laptops, tablets, smartphones) wirelessly to the Internet
through one physical Internet connection. I have learned that an IP address
assigned by Comcast, which is an ISP, toa home router tends to remain unchanged
absent an intervening event, such as a failure to pay a monthly bill.

14. Oncea UI claim is filed by an unemployed worker, the state UI agency

will either approve the claim or reject it. Ifthe state UI agency approvesa UI

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claim, the claimant will receive UI benefits. But he or she is required thereafter to
periodically re-certify the claim via telephone or Intemet. The claimant must also
periodically certify that he or she is still unemployed and actively seeking work.

15. One way in which UI benefits are provided to a claimant in Michigan is
through the use of a debit card issued by the Bank of America, NA which is mailed
to the claimant through the U.S. Postal Service. The unemployment benefits are
loaded onto the debit card electronically. Additional UI benefits can be loaded onto
the debit card subsequently, also by electronic means.

16. Alternatively, a claimant can provide the state UI agency with a bank
routing number and bank account number so his or her UI benefits can be
transferred via electronic funds transfers (EFTs) into his or her bank account.
These EFTs originate from one or more accounts maintained by the Michigan UIA
at Bank of America, NA. Bank of America, NA is a subsidiary of Bank of America
Corporation, a bank holding and financial holding company headquartered in
Charlotte, North Carolina. All EFTs of UI benefits to Michigan UI claimants
involve the transmission of electronic signals through one of Bank of America’s
two data centers, which are located in Virginia and Texas, and from those data
centers to banks located in Michigan. These are interstate wire communications.

17. In an effort to prevent and otherwise inhibit fraud, state UI agencies

capture and retain certain data surrounding the interaction between a claimant and

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Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.9 Filed 03/23/21 Page 9 of 17

the UI system. Each timea UI account is accessed electronically by a claimant, it
creates a digital footprint of sorts. Although states utilize their own unique
systems, many times the data that are recorded and retained include the Internet
protocol (IP) address associated with an electronic device accessing a UI account,
as explained above in Paragraph 13. Other data that are recorded and retained
include the dates and times a UI account was accessed by an electronic device.
State UI agency systems can tie this information to information about a claimant
(or someone impersonating the claimant) provided by the claimant (or someone
impersonating the claimant), such as the claimant’s name, address, social security
number, and banking information. It is through the analysis of this data that state
UI agencies and investigating agents can identify fraudulent trends and tendencies
associated with certain claims.

PROBABLE CAUSE

18. In May 2020, Michigan UIA’s Fraud Division identified Internet
protocol (IP) address 68.37.20.62 as an IP address from which someone had filed,
accessed, and/or modified over 100 UI claims and accounts between March 2020
and May 2020. Michigan UIA’s Fraud Division learned that the Internet service
provider (ISP) for IP address 68.37.20.62 was Comcast. Comcast provided the
subscriber information for IP address 68.37.20.62. Comcast records showed that

the subscriber was CHRISTOP[HER] NIEBEL; that the person to be billed was
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.10 Filed 03/23/21 Page 10 of 17

CHRISTOPHER NIEBEL; that the billing/service address was 6601 Park Ave Ste 7,
Allen Park, MI 48101; and that the subscriber’s phone number was 313-438-6247.

19. In May 2020, Michigan UIA’s Fraud Division identified a different IP
address, 68.43.254.142, as an IP address from which someone had filed, accessed,
and/or modified dozens of UI claims between March 2020 and May 2020, many
involving the same UI accounts referredto above in Paragraph 18. Michigan UIA’s
Fraud Division learned that the ISP for IP address 68.43.254.142 was Comcast.
Comcast provided the subscriber information for IP address 68.43.254.142.
Comcast records showed that the subscriber was an individual whose initials are
R.M. and that the service address was 15255 Warwick Avenue, Allen Park, MI
48101.

20. According to records of the Michigan Secretary of State, the address on
CHRISTOPHER NIEBEL’S Michigan driver’s license in June 2020 was 15255
Warwick Avenue, Allen Park, MI 48101.

21. Accordingto a law enforcement database, the subscriber for phone
number 313-438-6247 was “Tax Guy Chris.” This same database provided a
possible domain name for Tax Guy Chris as taxguychris.com. In or around June
2020, I visited www.taxguychris.com. In the webpage’s “About Us” section, the

founderis listed as CHRIS NIEBEL. The section states in part, “Chris Niebel has
Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.11 Filed 03/23/21 Page 11 of 17

been a certified tax preparer since 2009. He started out as a manager with Liberty
Tax Service in River Rouge, MI, before founding Tax Guy Chris in 2013.”

22. According to the Lexis-Nexis public records database, an assumed name
certificate was filed in Wayne County, Michigan, in March 2013 for “Tax Guy
Chris.” The certificate was filed by CHRISTOPHER NIEBEL, 15255 Warwick Ave.,
Allen Park, MI 48101.

23. According to corporate records of the Michigan Department of Licensing
and Regulatory Affairs, “Tax Guy Chris, LLC” was organizedin August 2014. The
address of its registered office was 6601 Park Avenue, Suite 7, Allen Park, MI
48101.

24. In May 2020, surveillance was conducted at 6601 Park Avenue in Allen
Park, Michigan, atwo story, multi-office building that appeared to be occupied by
several different businesses. The entrance doors to the office building included a
decal for “Tax Guy Chris.” The decal listed a phone number for Tax Guy Chris as
313-438-6247, the same number mentioned in Paragraphs 18 and 21. On the
second floor of the office building, on the office door affixed with thenumber “7,”
another “Tax Guy Chris” decal was affixed.

25. In August 2020, Michigan UJA’s Fraud Division provided me with an
updated list of suspected fraudulent UI claims associated with CHRISTOPHER

NIEBEL. The UI claims were associated with NIEBEL through the two IP addresses

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Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.12 Filed 03/23/21 Page 12 of 17

described above in Paragraphs 18 and 19 and/or various other indicators, such as
use of the same email address(es), the same phone number(s), and similar claimant
“user names.” Michigan UIA’s Fraud Division found that CHRISTOPHER NIEBEL
was associated with approximately 119 different fraudulent UI claims. Of these
fraudulent UI claims, approximately 111 were successful and received some UI
benefits. The total amount of benefits paid by UIA on these approximately 111
successful UI claims was approximately $849,000.00. These benefits included
regular UI benefits as well as pandemic-related UI benefits provided through the
CARES Act.

26. Between approximately June 2020 and September 2020, I subpoenaed
multiple financial institutions for the records of accounts that had received UI
benefits through one or more of the 111 fraudulent UI accounts referred to above
in Paragraph 25. As mentioned above in Paragraph 16, one way a claimant can
receive his or her UI benefits is to provide Michigan UIA witha routing number
and bank accountnumber to enable the UI benefits to be directly deposited. This
would cause UI benefits to be sent to the appropriate financial institution and bank
account via electronic funds transfers (EFTs) from an account of the Michigan
UIA at Bank of America, NA, as explained above in Paragraph 16.

27. Inall, I recetved the records of approximately 47 different bank

accounts. These bank accounts were associated with approximately 49 different

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Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.13 Filed 03/23/21 Page 13 of 17

fraudulent UI accounts. Of these approximately 47 different bank accounts,
approximately 28 accounts listed the accountholder as CHRISTOPHER NIEBEL. Of
these approximately 28 accounts, approximately 26 listed the accountholder’s
address as 15255 Warwick Avenue, Allen Park, MI 48101.
Victim A.M.

28. According to Michigan UIA’s Fraud Division, on or about May 13,
2020, a UI claim was filed in the name of an individual whose initials were A.M.
The claim was filed using IP address 68.37.20.62. A.M.’saddress was an address
in metropolitan Detroit. Income verification documents submitted with A.M.’s UI
claim included an IRS Form 1099 that listed A.M.’s employer as Healthy Homes
of Michigan. The claim directed UI benefits to be directly deposited into account
no. XXXxxxxx2499 at Citizen’s Bank. A review of subpoenaed documents provided
by Citizen’s Bank for account no. xxxxxxxx2499 listed the accountholder as
CHRISTOPHER NIEBEL. Theaccount opening documents showed that this account
was opened on or about May 10, 2020. The address listed for CHRISTOPHER NIEBEL
was 15255 Warwick Avenue, Allen Park, MI 48101. Account statements for
account no. Xxxxxxxx2499 showed that on or about May 14, 2020, $7,944.00 was
transferred into the account from Michigan UIA.

29. A.M. was located through the Social Security number used on the UI

claim made in her name. In February 2021, A.M. was interviewed. A.M. resides in

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Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.14 Filed 03/23/21 Page 14 of 17

Oklahoma and has never filed for UI benefits in Michigan. A.M. had not provided
anyone with permission to file a UI claim on her behalf in Michigan or to
otherwise use her personally identifiable information. A.M. has neverheard of
Healthy Homes of Michigan and has never worked for a company by that name.
Victim S.N.

30. According to Michigan UIA’s Fraud Division, on or about May 10,
2020, a UI claim was filed in the name of an individual whose initials were S.N.
The claim was filed using IP address 68.37.20.62. S.N.’s address was an address in
metropolitan Detroit. Income verification documents submitted with S.N.’s UI
claim included an IRS Form 1099 that listed S.N.’s employer as Healthy Homes of
Michigan. The claim directed UI benefits to be directly deposited into account no.
XXXXXXxx9438 at Citizen’s Bank. A review of subpoenaed documents provided by
Citizen’s Bank for account no. xxxxxxxx9438 listed the accountholder as
CHRISTOPHER NIEBEL. Theaccount opening documents showed that this account
was opened on or about May 7, 2020. The address listed for CHRISTOPHER NIEBEL
was 15255 Warwick Avenue, Allen Park, MI 48101. Account statements for
account no. Xxxxxxxx9438 showed that on or about May 13, 2020, $7,582.00 was
transferred into the account from Michigan UIA.

31.S.N. was located through the Social Security number used on the UI

claim made in her name. In January 2021, S.N. was interviewed. S.N. resides in

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Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.15 Filed 03/23/21 Page 15 of 17

California and has never filed for UI benefits in Michigan. S.N. had not provided
anyone with permission to file a UI claim on her behalf in Michigan or to
otherwise use herpersonally identifiable information. S.N. has never heard of
Healthy Homes of Michigan and has never worked for a company by that name.
Victim E.G.

32. According to Michigan UIA’s Fraud Division, on or about May 17,
2020, a UI claim was filed in the name of an individual whose initials were E.G.
The claim was filed using IP address 68.37.20.62. E.G.’s address was an address in
metropolitan Detroit. Income verification documents submitted with E.G.’s UI
claim included an IRS Form 1099 that listed E.G.’s employer as Healthy Homes of
Michigan. The claim directed UI benefits to be directly deposited into account no.
XXXXXXxx2921 at Citizen’s Bank. A review of subpoenaed documents provided by
Citizen’s Bank for account no. xxxxxxxx2921 listed the accountholder as
CHRISTOPHER NIEBEL. Theaccount opening documents showed that this account
was opened on or about May 6, 2020. The address listed for CHRISTOPHER NIEBEL
was 15255 Warwick Avenue, Allen Park, MI 48101. Account statements for
account no. Xxxxxxxx9438 showed that on or about May 14, 2020, $7,944.00 was
transferred into the account from Michigan UIA.

33. E.G. was located through the Social Security number used on the UI

claim made in her name. In December 2020, E.G. was interviewed. E.G. resides in

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Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.16 Filed 03/23/21 Page 16 of 17

California and has never filed for UI benefits in Michigan. E.G. hadnot provided
anyone with permission to file a UI claim on her behalf in Michigan or to
otherwise use herpersonally identifiable information. E.G. has never heard of
Healthy Homes of Michigan and has never worked for a company by that name.

CONCLUSION

34. In light of the information set forth above, I submit that there is probable
cause to believe that CHRISTOPHER DOMINIC NIEBEL committed wire fraud, in
that he did execute a scheme to defraud and obtain state and federally funded
unemployment benefits by means of false and fraudulent pretenses and
representations and did in furtherance of the scheme knowingly cause the
transmission of interstate communications directly or indirectly from the States of
Texas or Virginia to the Eastern District of Michigan, in violation of 18 U.S.C. §
1343. I also submit that there is probable cause to believe that CHRISTOPHER
DOMINIC NIEBEL committed the crime of aggravated identity theft, in that, during
and in relation to his wire fraud offenses, he did, in the Eastern District of
Michigan, knowingly possess and use without lawful authority numerous means of

identification of other individuals, including but not necessarily limited to names

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Case 2:21-cr-20553-MAG-APP ECF No. 1, PagelD.17 Filed 03/23/21 Page 17 of 17

and Social Security numbers, in violation of 18 U.S.C. § 1028A.

Sworn to before me and signed in my
presence and/or by reliable electronic

means this day of March 2021.

Kong A Abbe

Kimberly Altman-
United States Magistrate Judge

Dated; March 23, 2021

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Digitally signed b
G re g 0 ry Grogory Waterson
Waterson

Date: 2021.03.18
08:39:06 -04'00'

Gregory D. Waterson
Special Agent, OIG
U.S. Department of Labor


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