Understanding Unemployment Benefit Fraud
Unemployment benefits have been especially crucial in the wake of the coronavirus pandemic. With job loss being a concern across the nation, this aid has given some relief to affected families. Some individuals have attempted to maximize this income by working while applying for unemployment.
Individuals are allowed to file for unemployment only when they work less than four days a week and make less than $504 in that period. If their endeavors bring home more than $504, they are ineligible for unemployment benefits. Filing a claim to receive them would constitute unemployment fraud.
Additional offenses that qualify as unemployment insurance benefit fraud include:
- Being unready, unwilling, and unable to work while collecting benefits
- Collaborating with an employer to claim benefits illegally
- Filing fraudulent claims under another person’s name and Social Security number
- Helping someone file a false unemployment claim
- Inaccurately reporting the days you’re working and amount you’re receiving while collecting benefits
- Providing inaccurate information in your benefits application
- Working under the table while collecting benefits
- Working while claiming that you are not working on the unemployment application
Penalties of Unemployment Insurance Benefit Fraud
The penalties of unemployment fraud vary depending on the amount of benefits that an individual fraudulently received. An individual could face:
- Fifth-Degree Unemployment Insurance Fraud: Occurs when an individual fraudulently obtains any amount in benefits. It is a Class A misdemeanor punishable by incarceration for up to one year and a fine of up to $1,000.
- Fourth-Degree Unemployment Insurance Fraud: Occurs when an individual fraudulently obtains over $1,000 in benefits. It is a Class E felony punishable by incarceration for up to four years and a fine of $5,000 or twice the sum of the benefits claimed.
- Third-Degree Unemployment Insurance Fraud: Occurs when an individual fraudulently obtains over $3,000 in benefits. It is a Class D felony punishable by incarceration for up to seven years and a fine of $5,000 or twice the sum of the benefits claimed.
- Second-Degree Unemployment Insurance Fraud: Occurs when an individual fraudulently obtains over $50,000 in benefits. It is a Class C felony punishable by incarceration for up to 15 years and a fine of twice the sum of the benefits claimed.
- First-Degree Unemployment Insurance Fraud: Occurs when an individual fraudulently obtains over $1,000,000 in benefits. It is a Class B felony punishable by incarceration for up to 25 years and a fine of twice the sum of the benefits claimed.
In addition to the jail sentence and fine, convicted individuals will be required to pay restitution to the Department of Labor. The minimum fine that an offender may be expected to pay is the amount which they fraudulently claimed as benefits. Guilty individuals will also likely be disqualified from receiving any future Unemployment Insurance benefits.
If you’ve been accused of unemployment benefit fraud, our firm can help. Call us today to get started: (516) 218-5131.