Center Line woman sentenced in unemployment fraud scheme

A Center Line woman was sentenced this week to 18 months in prison for stealing more than $300,000 in a wire fraud scheme targeting pandemic unemployment assistance benefits, federal officials said.

April Rienstra, 52, was sentenced Tuesday by U.S. District Judge Bernard Friedman, records show.

She pleaded guilty in November to wire fraud.

Authorities allege Rienstra defrauded the Michigan Unemployment Insurance Agency between April 2020 and 2021 by submitting bogus pandemic unemployment benefits applications for herself and others who paid.

"Ultimately, her scheme involved dozens of fraudulent claims and resulted in over $300,000 in losses to the MUIA," the U.S. Attorney's Office said in a statement.

Rienstra was ordered to pay $318,760 in restitution.

“Enhanced assistance for unemployed workers was a key lifeline for many of our district’s citizens during the pandemic," U.S. Attorney Dawn Ison said. "Unfortunately, those enhanced benefits attracted criminals seeking to exploit the system and enrich themselves at the public’s expense. Our office will remain vigilant in our pursuit of those who cheat the government and their fellow citizens."

James Tarasca, Special Agent in Charge of the FBI in Michigan, added: “Ms. Rienstra defrauded a system designed to provide much needed support to individuals who were unemployed because of the pandemic. Her actions potentially prevented those who legitimately needed financial support during difficult times from receiving vital assistance."

In a sentencing memorandum filed this month, Rienstra's attorney, Loren Dickstein, argued her client deserved a shorter sentence.

The mother of four, who is diabetic and was in an abusive relationship at the time, has cooperated with investigators and "expressed her sincere remorse and regret, and ceased all involvement in illicit activity," the attorney said. "She also has a notable work history, has made efforts to rehabilitate and distance herself from her ex-husband ... Ms. Rienstra has repented her crime, has devoted herself to running her online store to build an honorable life and has a minor daughter who depends on her."

Her sentencing follows others tied to unemployment fraud.

Last month, a Commerce Township man was charged in connection with applying for nearly $1 million worth of pandemic loans for fake businesses.

A Detroit man also was sentenced to eight years in federal prison in connection with schemes to seize more than $2.2 million in COVID-19 pandemic aid and defraud the United States Postal Service of more than $200,000.

Last year, a former Michigan unemployment insurance examiner and three others were indicted by a federal grand jury in connection with an alleged scheme to steal more than $1 million in benefits.

A 2021 state audit found the Unemployment Insurance Agency lost more than $8.5 billion to suspected fraudulent payments amid record claims and persistent attempts at fraud.