In California, unemployment insurance fraud has lately increased as a result of the state's growing unemployment rates brought on by the COVID-19 outbreak and recession. Keep reading to learn what actions could lead to being charged with this crime. Then contact Law Office of Michael L. Fell at (949) 585-9055 for a free legal consultation with a criminal defense attorney.

What is unemployment insurance?

Unemployment insurance aims to provide assistance to those who have lost their jobs as a result of outside factors while they hunt for new work. Applying for unemployment benefits requires that you have accumulated sufficient income during the base period, totally or partially lack a job, are physically capable of working and jobless by no fault of your own, and are accessible for work and prepared to accept assignments right away.

While unemployment insurance is a fantastic tool to keep individuals afloat during a difficult period, some people could be tempted to abuse the system in order to obtain free money. As a result, persons who perpetrate fraud are subject to stringent regulations.

Laws against unemployment insurance fraud

Fraudulent claims for unemployment benefits are prohibited by California Unemployment Insurance Code Section 2101. The prosecution must establish each of the following in order to convict you of violating this section:

• You utilized a fake name, social security number, or other form of identification, or you deliberately made a false statement or representation or omitted to disclose a material fact.
• You gained any profit or payout for yourself or another person, or you raised, decreased, or defeated it.

You could be accused of insurance fraud in a variety of ways, such as getting unemployment benefits by creating a false identity, collecting unemployment benefits while working elsewhere and without disclosing it, using a different person's unemployment check without their consent, putting off looking for work or claiming to be unemployed although being employed, or receiving benefits from a state you don't live in. These activities are all considered fraud and are all prohibited by Section 2101.

Penalties for unemployment insurance fraud

The California EDD looks into claims of fraud. The fraud investigation unit thoroughly reviews the evidence when they have a suspicion that insurance fraud has been perpetrated. They then send the results to the area District Attorney's Office in order to seek criminal charges if they decide there is enough proof of fraud.

Section 2101 of the Unemployment Insurance Code

If discovered defrauding the system and found guilty of unemployment insurance fraud, they will face severe punishments. This offense is a "wobbler" in California, which means it can be prosecuted as either a felony or a misdemeanor. If you are found guilty of a misdemeanor under UIC Section 2101, you might face penalties of up to $20,000 up to 1 year in county jail. If you are convicted of a felony, you could face penalties of up to $20,000 and up to 16 months, 2 years, or 3 years in state jail.

Additionally, the prosecutor can elect to file charges against you under California Penal Code Section 550, the state's general insurance fraud law. Similarly, depending on how much money you got through deception, you might be charged with a felony or a misdemeanor. If the fraud is under $950, it is considered a misdemeanor and is penalized by $1,000 in maximum penalties and up to six months in a county jail.

If the fraud is more than $950 but still charged as a misdemeanor, penalties could include $10,000 in maximum fines and up to one year in county jail. For a felony conviction, the ramifications are substantially worse. You could face 2, 3, or 5 years in state jail, up to $50,000 in penalties, or double the amount of fraud, whichever is larger.

As you can see, these are serious charges. Contact Law Office of Michael L. Fell at (949) 585-9055 right away to request a free legal consultation and determine what your options are.