Busted: NJ Man Made $270K on Disability While Building Homes
A Toms River man has admitted to one of the largest individual Social Security disability fraud schemes in recent New Jersey history. Krzysztof Niedzielski, 49, pleaded guilty Thursday to defrauding the federal government of more than $270,000 over eight years by collecting disability benefits while secretly working in construction—the exact type of physical labor he claimed he was too disabled to perform.
According to U.S. Attorney Alina Habba, Niedzielski admitted to theft of public money and making false statements to the Social Security Administration. The elaborate scheme allowed him to collect benefits for himself, his wife, and his dependent children from 2012 to 2020, all while earning “substantial income” performing manual labor for a home improvement company, according to The Asbury Park Press.
The Ocean County resident now faces up to 15 years in federal prison and potential fines of up to $500,000 when he appears for sentencing on August 5 before U.S. District Judge Zahid N. Quraishi in Trenton.
The Double Life: Disabled on Paper, Contractor in Reality
Federal investigators discovered that throughout the eight-year period, Niedzielski maintained two contradictory personas. To the Social Security Administration, he presented himself as someone physically unable to work and in need of government assistance. Meanwhile, he was actively managing and performing physical labor for a home improvement contracting business.
“Niedzielski knowingly and intentionally concealed this work from the Social Security Administration to prevent any reduction in disability benefits,” prosecutors stated in court documents. The deception included explicit false statements to Social Security officials whenever questioned about his work status.
The investigation was conducted by special agents from the Social Security Administration’s Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly. Special Assistant U.S. Attorney Keith Abrams represented the government in the case.
Family Benefits: How the Scheme Multiplied
What made Niedzielski’s fraud particularly costly to taxpayers was his ability to collect benefits not just for himself but also for his family members. Under Social Security regulations, when someone qualifies for disability benefits, their spouse and dependent children may also be eligible for additional payments.
This “auxiliary benefits” provision significantly increased the total amount Niedzielski was able to fraudulently obtain over the eight-year period. The total sum—$270,933.10—represents benefits that could have gone to legitimately disabled individuals and their families.
According to NJ.com, Niedzielski’s attorney has declined to comment on the case, leaving questions unanswered about what motivated the scheme or how the defendant plans to address the substantial financial penalties he now faces.
Massive fraud in Social Security EXPOSED🤨
— Valuetainment Media (@ValuetainmentTV) February 18, 2025
200 to 209 years old – 879 people.
220 to 229 years old – 1,039 people.
240 to 249 years old – 2 people.
360 years old – 1 person. pic.twitter.com/pEujFpUZ1T
A Growing Problem: Disability Fraud in America
Niedzielski’s case highlights a persistent challenge for the Social Security Administration, which must balance providing benefits to those genuinely unable to work with preventing fraud that drains resources from the system.
The Social Security disability insurance program serves approximately 7.6 million Americans with disabilities who cannot sustain gainful employment. While the vast majority of recipients are legitimate, the Office of the Inspector General estimates that billions of dollars in improper payments are made annually due to fraud, errors, and outdated information.
Cases like Niedzielski’s are particularly damaging to the system because they involve long-term, deliberate deception rather than administrative errors or misunderstandings of complex eligibility rules.
Digital Footprints Lead to Conviction
While court documents don’t specify exactly how investigators uncovered Niedzielski’s double life, similar cases have been cracked through increasingly sophisticated digital detection methods. Cross-referencing tax records, banking information, and social media can reveal discrepancies between claimed disabilities and actual activities.
The Social Security Administration has expanded its fraud detection capabilities in recent years, including creating Cooperative Disability Investigation units that partner with state and local law enforcement to identify suspicious claims.
These enhanced monitoring systems have made it increasingly difficult for individuals to maintain the kind of long-term deception that Niedzielski admitted to perpetrating.
What Happens Next?
Beyond the potential prison sentence and fines, Niedzielski will likely be required to make full restitution of the $270,933.10 he fraudulently obtained. The government typically pursues aggressive recovery of stolen benefits, including garnishing future income and seizing assets if necessary.
The case serves as a cautionary tale about the serious consequences of Social Security fraud. While the disability system exists to provide a crucial safety net for those unable to work, abusing it carries significant legal penalties that can far outweigh any short-term financial gains.
Niedzielski’s sentencing hearing on August 5 will determine the final consequences for his eight-year scheme. He is currently represented by criminal defense attorney Nicholas Moschella of Brick, New Jersey.
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