Unemployment benefits are a crucial safety net for individuals who have lost their jobs. However, if you're accused of unemployment fraud, you could be facing serious legal consequences. Understanding what constitutes fraud and how to defend yourself is essential. In this blog, we’ll explain what unemployment insurance fraud is, common reasons people face charges, and how a defense attorney can help you fight these allegations.
What Is Unemployment Insurance Fraud?
Unemployment insurance fraud occurs when someone intentionally provides false information or conceals facts to obtain benefits they are not entitled to. This crime can take various forms, such as:
- Using a false identity to claim benefits
- Failing to report employment while continuing to receive unemployment benefits
- Lying about actively searching for work while collecting benefits
- Misreporting income or benefits, such as workers’ compensation, while receiving unemployment
The California Employment Development Department (EDD) actively investigates potential fraud cases based on tips or red flags identified by case officers. If enough evidence is found, the case may be forwarded to a prosecutor for criminal charges.
Common Reasons People Face Unemployment Fraud Charges
Unemployment fraud charges can arise for various reasons. Some common situations include:
- Failure to report employment: Continuing to collect unemployment benefits after securing a job is one of the most common forms of fraud. Many people mistakenly believe they can receive both income from work and unemployment benefits without reporting the change.
- Using a fake identity: Claiming benefits under a false name or Social Security number is a direct violation of unemployment laws.
- Falsifying job search efforts: In some cases, individuals claim to be actively searching for work when they are not, which can lead to fraud charges.
- Failure to disclose additional benefits: Receiving other benefits, such as workers' compensation, without notifying the unemployment office can also result in charges.
Even small mistakes or oversights can lead to accusations of fraud. That’s why it’s essential to understand your legal responsibilities when applying for unemployment benefits.
Employers Can Face Unemployment Fraud Charges Too
While most people associate unemployment fraud with employees, employers can also be charged under certain circumstances. For example, if an employer provides inaccurate information about why an employee was terminated, it could be considered fraud.
Employers have a legal responsibility to report accurate information regarding an employee’s termination, layoffs, or hours worked. Misrepresenting these facts can lead to penalties or criminal charges for the employer as well.
What Are the Potential Consequences?
The severity of unemployment fraud charges depends on the circumstances and the amount of money involved. In California, unemployment fraud can be charged as either a misdemeanor or a felony:
- Misdemeanor charges may result in fines, community service, and possible jail time.
- Felony charges carry more severe penalties, including larger fines, longer prison sentences, and a permanent criminal record.
In addition to criminal penalties, individuals convicted of unemployment fraud may be required to repay the benefits they wrongfully received, often with added penalties or interest.
How an Attorney Can Help Defend You Against Fraud Charges
If you are facing unemployment fraud charges, contacting a skilled defense attorney is critical. An experienced lawyer can help build a strong defense and may be able to challenge the evidence presented against you.
Some potential defenses include:
- Lack of criminal intent: Your attorney may argue that you did not knowingly provide false information or misrepresent your situation. Mistakes and misunderstandings can happen, and without criminal intent, a fraud charge may not hold up in court.
- Insufficient evidence: The burden of proof lies with the prosecution. If the evidence against you is weak or inconclusive, your lawyer may be able to get the charges reduced or dismissed.
- Unawareness of reporting requirements: Sometimes, individuals may not be fully aware of the specific reporting requirements for unemployment benefits. Your lawyer can argue that you did not intentionally withhold information.
Protect Your Rights with Legal Representation
Facing unemployment fraud charges can be overwhelming, but you don’t have to navigate the legal system alone. At Law Office of Michael L. Fell, we understand the complexities of unemployment fraud cases and can provide the legal guidance you need. Call (949) 585-9055 today to schedule a consultation and learn more about your options for defending against these charges.