Nieland’s wife facing federal indictment for alleged social security fraud

DES MOINES — A federal grand jury has charged 47-year-old Altoona woman Leesa Marie Parkhill-Nieland, wife of Democratic candidate for Iowa Senate District 15 Dan Nieland, with Social Security fraud.

The charges were issued Aug. 28 and announced Friday afternoon in a press release from United States Attorney Marc Krickbaum. Parkhill-Nieland is charged with theft of government funds, Social Security fraud and making a false statement to the Social Security Administration.

According to federal prosecutors, Parkhill-Nieland allegedly received Social Security Disability Insurance Benefits from about December 2012 until about April 2018. The indictment states during this time, Parkhill-Nieland was self-employed through two different businesses, Pine Hollow Stables — a business she operated with her husband Dan Nieland — and Coat of Many Colors. The federal government claims Parkhill-Nieland concealed and failed to disclose that employment from the Social Security Administration in order to continue to receive payments.

Parkhill-Nieland appeared in United States District Court in Des Moines on Sept. 14 and entered a plea of not guilty.

“(Parkhill-Nieland) adamantly denies the government’s allegations and looks forward to the opportunity to defend herself before a jury,” her attorney said in an emailed statement.

The case is being investigated by the Social Security Administration—Office of Inspector General and is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

Dan Nieland is maintaining his wife’s innocence in the case.

“I stand by my wife 100 (percent), Nieland told the Newton Daily News. “She is innocent of these charges. I refer all legal questions to her attorney.”

Polk County Democratic Party Chair Sean Bagniewski did not return a call for comment. Jasper County Party Chairwoman Michelle Smith said she was made aware of the charges Friday, but wanted to speak with her candidate and his family before releasing a statement.

Friday’s announcement from the Department of Justice is just the latest chapter in the Jasper and Polk County Democrats’ struggle to hold the Iowa Senate seat they’ve kept for decades. The district encompasses Newton, western Jasper County and eastern Polk County including portions of Altoona.

Popular one-term incumbent Chaz Allen, D-Newton, announced he was dropping his re-election bid earlier this summer after accepting his party’s nomination, citing a “business opportunity.”

Democrats then nominated former Jasper County Democratic Party Chairperson Taylor Van De Krol, who was on the campaign trail for less than two weeks before leaving the race for non-described “personal reasons.”

Nieland won the nomination on Aug. 22, challenging longtime Southeast Polk Community School Board member Lori Slings in a vote from party precinct chairs held in Newton. He will face current State Rep. Zach Nunn, R-Bondurant, in November. Nunn won the Republican nomination for SD 15 only after Tim Shay of Newton, agreed to leave the race to clear the way for a better-financed candidate.

The Democrats have both been hitting the pavement and putting their financial support behind Nieland. According to a volunteer, the Jasper County Democratic Central Committee recently donated $10,000 to his campaign for Senate.

Nieland owns the horse boarding facility near Mitchellville with his wife and teaches at Des Moines Area Community College.

Contact Mike Mendenhall 641-792-3121 Ext 6530 at mmendenhall@newtondailynews.com