Unemployment fraud or unemployment insurance fraud happens, when somebody tries to avail unemployment insurance benefits by lying to the Department of Labor. Millions of unemployed American citizens rely on unemployment insurance benefits. Providing false information or failing to disclose information on your application for benefits, lying about how you lost your job, working while collecting unemployment benefits and inaccurately reporting your days and earnings and using another person’s social security number to file fraudulent claims are some of the examples of such fraud. This article answers some of the frequently asked questions on such frauds and laws associated with them.
What is unemployment fraud?
It is a type of fraud, in which somebody misrepresents his/her employment related issues to avail the government sponsored unemployment insurance benefit. If you work while receiving benefits, you must report all full-time and part-time employment to the Labor Department or you could be charged with a committing a fraud. Is it a fraud, if someone receives extra amount under the unemployment insurance program?
If somebody happens to receive overpayment under the unemployment insurance scheme for no fault, it may not be considered as a fraud. Even, depending on the surrounding circumstances, the beneficiary might not have to repay a non-fraudulent extra benefit received. But, most likely, he/she might receive a notice from the Department of Labor asking to repay. Whether you are liable to pay or not, depends on your case entirely. You might have to hire the services of a criminal lawyer, who could help you in this. What are the penalties for committing employment insurance fraud and for receiving overpayment or extra benefit?
Under most circumstances, for either committing an employment fraud or receiving overpayment, the law specifies that the availed benefits must be repaid. Once convicted for availing benefits by providing false information, the punishment could be a financial penalty to the extent of 30% of the overpayment and a false statement disqualification of 5 to 23 weeks. If you don’t repay the overpayment even after receiving a notice, EDD may deduct the money owed from your future weekly unemployment or state insurance benefits. EDD is also authorized to reduce or totally withhold your state income tax refunds, lottery winnings, or any other money owed to you by the state. It could also file a claim against you in court, charge you court costs and interest, and record a lien on your property. In some cases, prosecution can be initiated with an arrest. To know more about such matter, you should get in touch with a criminal lawyer. What are my options to avoid a penalty or any other criminal proceedings against me related to an unemployment insurance fraud?
You may get a criminal record, if you receive conviction. In most of the unemployment compensation fraud case, the accused might not be charged with the crime if he/she opts for full restitution. One should always consult with a criminal lawyer on matters like this. Am I allowed to take up part time job while receiving unemployment insurance benefits?
Yes, there is no problem if you plan to work part time even while receiving the benefits. If you work less than four days in a week, you may receive partial benefits. Each day or part of a day of work could lead to a reduction in your weekly benefits. Receiving partial benefits extends the length of time you may collect benefits until you receive your maximum benefit amount or until your benefit year ends, whichever comes first. You could be considered to be employed if you are engaged in operating or starting a business either by yourself, with a partner or in a corporate arrangement. Time spent during the day or evening or on weekends preparing to start or actually operating a business may be considered employment even though you have not earned anything. You should get in touch with a criminal lawyer, who could assist you by going through your related documents. Can I self-disclose unemployment compensation fraud?
Yes, anyone can do that. If a person voluntarily comes forward to report that he/she has received unemployment insurance benefit without even being eligible for it and is ready to repay the same, the state might not initiate any legal action against him/her. It would be better, if you could speak to a criminal lawyer on this issue. Unemployment fraud is a serious offence that can even result in imprisonment. As laws pertaining to such matters vary from state to state, most of us find it difficult to be well informed all the times. In such cases, you should always ask a criminal lawyer who could help you further.
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