Unemployment insurance fraud occurs when an individual provides false, incomplete or misleading information, intentionally conceals facts or provides wrong identification for obtaining, increasing or denying benefits.
In California the Employment Development Department (EDD), which is a combination of both state and federal programs, is managing unemployment benefits system.
California unemployment insurance assists people who become unemployed through no fault of their own to keep financial security while they seek new job. There are some circumstances under which a person can qualify for benefits.
A person can recover a maximum of $450 per week and the program can’t last more than one year.
In California both employees and employers can be accused of committing unemployment insurance fraud.
Here are some examples of unemployment insurance fraud committed by employees:
Employers are committing unemployment insurance fraud when they try to deny benefits to a former employee for defrauding the EDD, these include:
The California EDD collects information mostly from public fraud report hotline and their field offices that gather unemployment fraud applications.
After gathering information EDD assigns alleged cases to a special investigation unit. In case unit manages to find adequate evidence that fraud has taken place they are will file unemployment insurance fraud charges. If they don’t get enough evidence they will drop the case or work for obtaining further information.
Unemployment insurance fraud is considered a wobbler and can be charged as either a misdemeanor or a felony, based on the case circumstances, the amount of the fraud and the defendant’s criminal history. Defendant can be charged either under Unemployment Insurance Code Section 2101 or California Penal Code Section 550 (PC 550).
Pursuant to the California Unemployment Insurance Code Section 2101 (a): It is a violation of this chapter to willfully make a false statement or representation, to knowingly fail to disclose a material fact, or to use a false name, false social security number, or other false identification to obtain, increase, reduce, or defeat any benefit or payment, whether for the maker or for any other person, under any of the following statutes administered by the department:
Penalties for misdemeanor conviction for violating Unemployment Insurance Code Section 2101 include the following:
Penalties for felony conviction for violating Unemployment Insurance Code Section 2101 include the following:
In case the total amount of the fraud is $950 or less the crime is considered a misdemeanor, punishable by:
In case the total amount of the fraud is more than $950 the crime is considered wobbler.
Are you in need of legal assistance as a result of being charged for unemployment insurance in California? A criminal defense attorney in your area may be able to provide you with the help that you need.
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