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Patrick, Esq.
Patrick, Esq., Lawyer
Category: California Employment Law
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Experience:  Significant experience in all areas of employment law.
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I was claiming EDD,and have extra income,but did not report

Resolved Question:

I was claiming EDD,and have extra income,but did not report it.
Submitted: 4 years ago.
Category: California Employment Law
Expert:  Patrick, Esq. replied 4 years ago.

LegalPro54 :

Hello and thank you for allowing me to assist you. What specifically is the question that you'd like me to answer?

Customer: I was claimingEDD,and have an extra income but did not report it,is that considered as fraud,and fraud a felony?
LegalPro54 :

Thank you for this clarification.

LegalPro54 :

The EDD classifies overpayments into two categories: non-fraud or fraud. The consequences are different depending on how the fraud is classified.

LegalPro54 :

When you have received benefits to which you were not entitled and you are NOT at fault, the overpayment is considered "non-fraud." In some cases, you may not have to repay a non-fraud overpayment at all.

LegalPro54 :

However, when a claimant knowingly gives false information or withholds information and receives benefits, the overpayment will be considered "fraudulent," which can have potentially serious criminal consequences.

LegalPro54 :

Typically, with a fraud overpayment, the claimant is penalized in the amount of 30 percent of the amount of the overpayment

LegalPro54 :

The EDD also typically issues a false statement disqualification of 5 to 23 weeks, meaning you are barred from receiving further government assistance for that period of time.

LegalPro54 :

Fraud overpayments and penalties must be repaid in every case.

LegalPro54 :

If convicted of UE insurance fraud as a misdemeanor, you face up to one year in a county jail and a maximum fine of $20,000. If convicted as a felony, you face imprisonment in the California state prison for 16 months, two or three years, and a maximum $20,000 fine.

LegalPro54 :

I sincerely XXXXX XXXXX this information helps you and I wish you the very best of luck. Bear in mind that none of the above constitutes legal advice nor is any attorney client relationship created between us.


 


Please abide by the honor code of this website by kindly clicking on the GREEN ACCEPT button if my answer has been helpful to you. Thank you very much.


 

Customer: So if I pay the overpayments,and explain,why I did not report the income,due to financial hardship,is there jail time?
Patrick, Esq. and other California Employment Law Specialists are ready to help you
Expert:  Patrick, Esq. replied 4 years ago.
Thank you for your reply. The district attorney has to CHOOSE to prosecute a case of unemployment insurance fraud. I can't predict whether they would decide to prosecute any given case or not, as it is within their sole discretion. That said, if an investigation has not already begun and you paid back the overpaid amounts without being asked and in good faith, it would be very hard to argue that the deception was fraudulent, since you corrected the situation on your own.

I hope that this adequately clarifies my response and makes it worthy of your "Accept." Best wishes to you in 2012.

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