California’s economy relies heavily on unemployment benefits. Unemployment insurance (also known as UI) provides compensation to workers across the state in the event that they lose their jobs. While unemployment benefits are primarily used by those who really need them to keep afloat after losing their job, the system is abused by certain people.
The California Employment Development Department’s fraud investigation team may file accusations of unemployment insurance fraud in certain circumstances. If you are facing this situation, the most important thing to do is to contact a fraud defense attorney right away. Read on to learn more and then contact Chambers Law Firm at 714-760-4088 for a consultation.
Unemployment insurance fraud: what is it?
Unemployment insurance fraud is a broad category of crime that includes “willful false representation, knowing concealment, or fake identity to acquire, raise, diminish, or defeat any benefit under the state or federal programs.”
The state of California investigates alleged unemployment insurance fraud, which is typically based on public tips received through a hotline or “red flags” identified by case officers in field offices around the state. If the state discovers sufficient proof of unemployment insurance fraud, the matter is sent to a prosecutor for criminal prosecution.
There can be a number of reasons a person is charged with unemployment insurance fraud
Due to the wide nature of the statute, criminal charges for unemployment insurance might arise in a variety of ways. It is possible to commit fraud if a person continues to work while receiving unemployment benefits and does not disclose it. Using a fictitious identity to receive benefits is also deemed dishonest, as is pretending to be seeking for work (in other words, claiming that you are looking for a job when you are not).
It may also be deemed fraud if you get additional benefits, such as workers’ compensation, without disclosing them. It may also be deemed fraud under this rule if you fabricate the reason you are no longer working, such as lying about being fired.
Companies can face penalties too
While many people identify unemployment insurance fraud with employees, it is possible for companies to be prosecuted as well. Unemployment insurance fraud would occur if an employer provided incorrect information about why an employee was fired, for example.
Depending on the facts of the case and your criminal background, unemployment insurance fraud might be charged as a felony or a misdemeanor. This criminal offense, fortunately, has various possible defenses. In making a false statement, for example, a criminal defense attorney might claim that you did not have criminal intent and just did not adequately characterize your position. Your lawyer may also claim that you were unaware that particular income or benefits were required to be reported, or that the prosecutor lacks sufficient evidence to charge you with the offense.
At Chambers Law Firm we are well-versed in the burgeoning crime of unemployment insurance fraud. Contact us now at 714-760-4088 or dchambers@clfca.com to schedule a free first consultation if you have been charged with this or any other felony.
