Bronx Unemployment Fraud Lawyers

Overview of Unemployment Insurance Fraud

Individuals receive unemployment benefits from a partnership between federal and state governments. These benefits are intended to provide financial assistance to people who are not working. Unemployment benefits provide individuals with important financial assistance. Unfortunately, fraud exists in the unemployment benefits program. Investigators from the federal government estimate the cost of unemployment fraud is over $5 billion annually.

What is Unemployment Insurance Fraud?

The definition of unemployment insurance fraud, according to the New York State Department of Labor, involves lying to the Department of Labor. This could include making a claim for unemployment benefits that is inappropriate. Individuals may not be entitled to receive this type of financial assistance. When filling out an application for unemployment benefits, they will provide false information. These incidents are usually addressed at the state level. There is also identity theft rings that engage in identity theft and file unemployment claims on a large-scale and more.

The New York Department of Labor states that unemployment fraud is any instance where a person receives unemployment insurance benefits by lying. This could be outright providing false information or a lie of omission. To receive unemployment insurance benefits, you must submit an application with the reason you’re unemployed. If you’re approved, you must be ready and able to work every week. Every week that you submit your request for unemployment benefits, you need to verify to the Department of Labor that you were able to work, and if you worked any hours that week, you must report those hours and wages.

Federal Mandate

The state of New York is subject to a federal mandate making it necessary for an unemployment claim to be paid a few weeks after the claim is made. In some case, it could result in the state paying on a claim prior to an employer confirming the information provided by an individual about the reason for their unemployment. This has resulted in situations where unemployment fraud scams may get thousands and in some cases millions of dollars. It could be done using the identities of other people. Technologies are being used to prevent these situations, but fraud is still difficult to detect and scams are still operating.

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Legal Scenario: What Would You Do?

Scenario

You received a letter from the New York Department of Labor stating that you collected unemployment benefits while working off-the-books at a construction site in the Bronx. The letter demands repayment of $14,000 in benefits and mentions a potential criminal fraud referral to the Bronx District Attorney's office.

Can I really face criminal charges just for collecting unemployment while I was doing some casual work on the side?

Attorney's Answer

Yes, collecting unemployment benefits while earning unreported income is considered fraud under New York Penal Law § 165.15 (theft of services) and Labor Law § 594, and depending on the amount involved, you could face charges ranging from a misdemeanor to a Class E felony if the overpayment exceeds $1,000. The Department of Labor can impose penalties of up to 100% of the fraudulently obtained benefits on top of full repayment, and a criminal conviction could result in jail time, probation, and a permanent record. However, an experienced defense attorney may be able to negotiate a civil resolution, argue that the failure to report income was an honest mistake rather than intentional fraud, or challenge the calculation of the alleged overpayment. Acting quickly before formal charges are filed gives you the best chance of resolving this matter favorably.

This is general information only. Contact us for advice specific to your situation.

Forms of Unemployment Fraud

Criminal charges are filed for a number of different types of unemployment fraud. The Department of Labor keeps track of the various fraud schemes that are often utilized.

• Assisting another individual to make a false claim for unemployment benefits. This could involve collaboration with an employer who works to obtain unemployment insurance benefits illegally.
• Filing an unemployment benefits application with false information. This could also include failing to reveal the true reason for termination and more.
• Fraudulently using another person’s identity to file a fraudulent unemployment claim for benefits.
• While collecting unemployment, a person is working and being paid. They fail to report their income as well as days worked.
• Working off the books or under-the-table as a person collects unemployment benefits.