Information — United States v. Christopher D. Niebel, Eastern District of Michigan (ECF No. 16)
Summary
An Information in United States of America v. Christopher D. Niebel, Case 2:21-cr-20553-MAG-APP, ECF No. 16, in the U.S. District Court for the Eastern District of Michigan, Southern Division, filed August 27, 2021, citing 18 U.S.C. § 1343 and 18 U.S.C. § 1028A. The general allegations describe the FFCRA, the CARES Act unemployment programs and the Michigan Unemployment Insurance Agency. The information alleges that from February 2020 through approximately August 2020 Niebel obtained personally identifiable information of numerous individuals without their knowledge or consent, used it to submit online UI claims, and opened approximately 120 separate fraudulent UI accounts with the Michigan UIA. It alleges that the total UI benefits paid through those accounts was approximately $850,000.00. Count 1 is headed Wire Fraud and Count 2 is headed Aggravated Identity Theft.
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“Information — United States v. Christopher D. Niebel, Eastern District of Michigan (ECF No. 16).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-no-2-21-cr-20553-dkt-16-e-d-mich-02f08d2311/
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Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.53 Filed 08/27/21 Page 1 of 9
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
2:21−cr−20553
Assigned To : Goldsmith,
Mark A.
UNITED STATES OF AMERICA, Assign. Date : 8/27/2021
Plaintiff,
-vs-
VIO: 18 U.S.C. § 1343
D-1 CHRISTOPHER D. NIEBEL, 18 U.S.C. § 1028A
Defendant.
________________________________/
INFORMATION
THE UNITED STATES ATTORNEY CHARGES:
GENERAL ALLEGATIONS
1. 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 insurance systems and provide additional federally funded
unemployment benefits.
2. The Families First Coronavirus Response Act (FFCRA) was signed into
law on March 18, 2020. Division D of the FFCRA provided financial assistance
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.54 Filed 08/27/21 Page 2 of 9
and administrative support to state UI agencies to help them respond to the
additional demands caused by the coronavirus pandemic.
2. 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.
The CARES Act established these three programs:
● 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 in late December 2020 and is funded through
September 2021.
● The Pandemic Emergency Unemployment Compensation (PEUC)
program: the PEUC program provided up to 13 weeks of additional
federally funded benefits to those who had exhausted benefits under
regular unemployment compensation or other programs. The PEUC
program is funded through September 2021.
● The Pandemic Unemployment Assistance (PUA) program; the PUA
program provided federally funded benefits to self-employed workers,
independent contractors, and others not ordinarily eligible for
unemployment benefits. The PUA program is funded through September
2021.
-2-
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.55 Filed 08/27/21 Page 3 of 9
3. At all times relevant to this Information, an unemployed worker initiated
an unemployment insurance (UI) claim by submitting the claim in person, over the
telephone, or online. The overwhelming majority of UI claims are filed online.
Claims filed online are usually filed from desktop or laptop computers. Ordinarily,
this means that all contacts and communications between the claimant and state UI
agency are electronic.
4. In order to be eligible for UI benefits, a worker is required to demonstrate
a certain level of earnings in the several quarters immediately preceding the
beginning of his or her unemployment.
5. Once a UI claim is filed by an unemployed worker, the state UI agency
will either approve the claim or reject it. If the state UI agency approves a UI
claim, the claimant will receive UI benefits. But he or she is required thereafter to
periodically re-certify the claim and periodically certify that he or she is still
unemployed and actively seeking work.
6. In Michigan, the federal-state unemployment insurance system is
administered by the Michigan Unemployment Insurance Agency (UIA). The
Michigan UIA provides UI benefits to claimants in one of two ways: UI benefits
can be loaded onto a debit card issued by the Bank of America, NA, which is
mailed to the claimant. Alternatively, UI benefits can be transferred via electronic
funds transfers (EFTs) to a bank account designated by the claimant. These EFTs
-3-
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.56 Filed 08/27/21 Page 4 of 9
originate from one or more accounts maintained by the Michigan UIA at Bank of
America, NA.
7. At all times relevant to this Information, CHRISTOPHER D. NIEBEL resided
in Allen Park, Michigan.
SCHEME TO DEFRAUD
8. From February 2020 through approximately August 2020, in the Eastern
District of Michigan and elsewhere, CHRISTOPHER D. NIEBEL, defendant herein,
did knowingly plan and carry out a scheme to defraud the federal-state
unemployment insurance (UI) system in Michigan and obtain and deprive it of
money and property by means of false and fraudulent pretenses and
representations.
9. It was a part of the scheme that CHRISTOPHER NIEBEL would obtain the
personally identifiable information (PII) of numerous individuals without their
knowledge or consent. The PII included names, dates of birth, and Social Security
numbers.
10. It was also a part of the scheme that CHRISTOPHER NIEBEL would use the
PII of those individuals to submit online claims in their names to the Michigan
UIA for UI benefits. None of these individuals was eligible to receive UI benefits
from the Michigan UIA, and none of them had given their consent or authorization
-4-
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.57 Filed 08/27/21 Page 5 of 9
to anyone to file UI claims in their names. Many of these individuals resided
outside of Michigan.
11. It was also a part of the scheme that CHRISTOPHER NIEBEL would open
dozens of bank accounts in the names of individuals whose PII he had unlawfully
obtained and in his own name. NIEBEL would use addresses in metropolitan Detroit
as the addresses of the accountholders. And he would direct the Michigan UIA to
send the UI benefits to those bank accounts, all of which he controlled, via
electronic fund transfers.
12. It was also a part of the scheme that CHRISTOPHER NIEBEL would use the
UI benefits to pay for his personal expenses through the use of debit cards tied to
those bank accounts and with the cash he withdrew from those bank accounts
through ATMs. Those expenses were for goods and services that included but were
not limited to food, transportation, Michigan lottery tickets, payments to collection
agencies, casino gambling, and the goods and services he paid for with cash.
13. CHRISTOPHER NIEBEL opened approximately 120 separate fraudulent UI
accounts with the Michigan UIA. The total amount of UI benefits paid to NIEBEL
through these fraudulent UI accounts was approximately $850,000.00. These UI
benefits included regular UI benefits as well as federal pandemic-related UI
benefits provided through the CARES Act.
-5-
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.58 Filed 08/27/21 Page 6 of 9
COUNT 1
(18 U.S.C. § 1343 – Wire Fraud)
D-1 CHRISTOPHER D. NIEBEL
14. The allegations set forth above in Paragraphs 1-13 are hereby realleged
and incorporated by reference.
15. On numerous occasions during the course of his scheme and in
furtherance of his scheme, which began in February 2020 and continued through
approximately August 2020, CHRISTOPHER D. NIEBEL, defendant herein, did
knowingly cause electronic fund transfers (EFTs) to be transmitted in interstate
commerce from one or more accounts maintained by the Michigan UIA at Bank of
America, NA to banks located in the Eastern District of Michigan via Bank of
America data centers located in the States of Virginia and Texas.
All in violation of Section 1343 of Title 18 of the United States Code.
COUNT 2
(18 U.S.C. § 1028A – Aggravated Identity Theft)
D-1 CHRISTOPHER D. NIEBEL
16. From February 2020 through approximately August 2020, in the Eastern
District of Michigan and elsewhere, CHRISTOPHER D. NIEBEL, defendant herein,
did, during and in relation to the wire fraud offense alleged in Count 1, knowingly
transfer, possess, and use without lawful authority numerous means of
-6-
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.59 Filed 08/27/21 Page 7 of 9
identification of other individuals, in violation of Section 1028A(a)(1) of Title 18
of the United States Code.
FORFEITURE ALLEGATIONS
(18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461)
17. The allegations set forth above in Paragraphs 1-16 are hereby
realleged and incorporated by reference for the purpose of alleging forfeiture
pursuant to 18 U.S.C. § 981(a)(l)(C) and 28 U.S.C. § 2461.
18. As a result of the forgoing violation of 18 U.S.C. § 1343, as set forth in
Count 1 of this Information, defendant shall forfeit to the United States of America
any property, real or personal, which constitutes or is derived from proceeds
traceable to said violation.
19. Substitute Assets: Pursuant to 21 U.S.C. § 853(p), as incorporated by 28
U.S.C. § 2461(c), the United States of America shall be entitled to forfeiture of
substitute property up to the value of the above forfeitable property if, by any act
or omission of the defendant, the above forfeitable property or any portion thereof
A. cannot be located upon the exercise of due diligence;
B. has been transferred or sold to, or deposited with, a third party;
C. has been placed beyond the jurisdiction of the court;
D. has been substantially diminished in value; or
-7-
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.60 Filed 08/27/21 Page 8 of 9
E. has been commingled with other property which cannot be
divided without difficulty.
SAIMA S. MOHSIN
Acting United States Attorney
s/John K. Neal
JOHN K. NEAL
Assistant United States Attorney
Chief, White Collar Crime Unit
s/Stephen L. Hiyama
STEPHEN L. HIYAMA
Assistant United States Attorney
211 West Fort Street, Suite 2001
Detroit, Michigan 48226
phone: 313-226-9674
email: stephen.hiyama@usdoj.gov
Date: August 27, 2021 bar no.: P32236
-8-
Case 2:21-cr-20553-MAG-APP ECF No. 16, PageID.61 Filed 08/27/21 Page 9 of 9
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