Christopher Niebel, a former tax preparer famously known as “Tax Guy Chris,” has pleaded guilty to charges of fraud and identity theft. His crimes were linked to a scheme involving pandemic unemployment insurance fraud.
A 45-year-old man named Niebel has admitted to committing wire fraud and aggravated identity theft. He confessed to using stolen identities to submit fraudulent claims during the COVID-19 pandemic.
Niebel, an entrepreneur in Allen Park, operated a tax preparation service and simultaneously held a seasonal managerial position at Party City. During his tenure at Party City in 2019, he had unauthorized access to files containing personal information of other employees and applicants. These files included the U.S. Citizenship and Immigration Service’s I-9 employment verification forms, which contained sensitive details such as names, social security numbers, and dates of birth.
Niebel utilized the data of employees or applicants who were not residents of Michigan because it was unlikely for them to file claims in Michigan, and they would probably not notice.
Niebel fraudulently used personal information to deceive the Michigan Unemployment Insurance Agency in order to obtain Pandemic Unemployment Assistance. He managed to receive benefits by directing them to various bank accounts in Michigan. Niebel then misused these funds for expenses such as food, lodging, lottery tickets, and casino gambling.
Niebel unlawfully obtained approximately $512,000 in pandemic unemployment assistance funds.
“According to U.S. Attorney Dawn N. Ison, stealing money from pandemic benefit programs is a grave offense that not only affects the rightful recipients but also burdens taxpayers. The act of stealing people’s identities to carry out this crime exacerbates the harm inflicted on the public. Ison emphasizes the significance of the guilty plea made by Mr. Niebel, as it represents an essential move towards holding him accountable for his crimes.”
According to Julia Dale, the Director of the UIA, the schemes related to pandemic fraud have been nothing short of astonishing.
“In the midst of the pandemic, when countless individuals were desperately seeking assistance, Chris Niebel’s primary focus was on exploiting the system for his own benefit,” expressed Dale in a statement. “The actions of Niebel, along with over 160 others who have been charged with unemployment fraud, undermine the trust of the public. However, we are determined not to let this hinder our efforts in implementing comprehensive reforms to regain that trust and establish the Michigan UIA as a leading example of efficient, equitable, and fraud-resistant service.”
The sentencing hearing is scheduled for May 21, presided over by United States District Judge Stephen J. Murphy III. Niebel could face up to 20 years in prison for the wire fraud offense. Additionally, the aggravated identity theft charge carries a mandatory two-year prison sentence, which must be served consecutively to any other custodial time given for the wire fraud charge.
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