Thank you kindly for the information provided on April 6, 2012 in regards XXXXX XXXXX EDD unemployment issue.
Today, I received three letters from the EDD titled "Notice of Determation." A large portion of the letters refers to code sections 1279 and 1252 and how I am not entitled to the full weekly benefit for certain weeks and how I am not entitled to receive a benefit for other weeks.
One section of the second letter I received from them is alarming. It reads:
"You are not eligible to receive benefits under California Unemployment Insurance Code Section 1257A beginning 4/22/12 until you have filed a claim for each of 10 weeks in which you are otherwise elgible for benefits."
"When you claimed benefits for the week(s) ending 4/7/11 & 4/23/11 to 10/15/11, you declared you had no work or earnings. After considering available information, the deparment finds that you do not meet the legal requirement for payment of full benefits. Section 1257A provides - an individual is disqualified if he willfully makes a false statement of withholds relevant information to obtain benefits. Section 1260A provides - an individual disqualified under section 1257a is ineligible for benefits from 5 to 15 weeks if benefits were paid as a result of the misstatement or omission, He or she must submit a continued claim form to the field office to cover each week and meet all eligibility requirements. No benefits are payable for three years from the original effective date of this disqualification unless it is satisfied at an earlier date and you are otherwise elgible. The repayment of any overpayment does not remove the disqualification."
The letters do not directly accuse me of fraud, but I am led to believe (after researching code section 1257a and the 10 week penalty), that is what I am being accused of.
I did not willfully make any false statement or purposefully withhold any information. As soon I learned I made a mistake and was not reporting 1099 income that I should have, I contacted the Edd immediately.
I am given the right to appeal their decision. Fraud will have a very negative impact on the 1099 business I trying to grow.
My apologies. I clicked accept/submit for you.
Let me also add that I notified the edd initially (during my first interview) that I was receiving 1099 income, which they had record of.
I clearly did not understand that I was supposed to list any 1099 income on my bi-weekly benefit form.
I would never want to put my professional licenses in jeopardy. Why doesn't the edd realize that me initially indicating I was receiving 1099 income and me voluntarily coming forward once I was aware I was supposed to report 1099 income as non-fraudulent intent?
I await your response.
Thank you for your reply.
My major concern is that I was disqualified under Section 1257a. Section 1257a mentions fraud even though it is not a charge of fraud and mentions that I willfully made false statements.
As you know from my previous coorespondence, as soon as I discovered my error I reported it to the EDD.
My main concern is not repayment of the money. My main concern is how this information is made public and will it affect my license with the California Department of Insurance?
I am considering the following alternatives:
1) Not to appeal and repay monies paid to me plus any penalties
2) Appeal decision because I know I did not willfully withhold information or commit fraud.
If I choose not to appeal, how is this communicated as public information on my record?
If I choose to appeal the decision and lose, how is this communicated as public information on my record?
My insurance license comes up for renewal on 7/31/12. Please see the questions below that are asked on my renewal. Question number #2 refers to administrative disciplinary action. Is this considered administrative disciiplinary action in regards XXXXX XXXXX insurance license ?
Have you been convicted of a crime which has not been previously reported to the California Department of Insurance? Yes No
"Crime" includes a felony, a misdemeanor or a military offense. "Convicted" includes, but is not limited to, having been found guilty by a verdict of a judge or jury, having entered a plea of nolo contendere, no contest, having had any charge expunged, dismissed or plea withdrawn pursuant to Penal Code 1203.4, or having been given probation, a suspended sentence or a fine. You may exclude traffic citations and juvenile offenses tried in juvenile court. You should answer "yes" if you have been convicted of a felony or a misdemeanor including driving offenses such as, but not limited to, reckless driving, driving under the influence and driving with a suspended license, whether or not you spent any time in jail, and whether or not you believe the conviction has been removed from your record.
2. Have you been involved in any administrative disciplinary action which has not been previously reported to the California Department
of Insurance? Yes No
"Involved" means having a license censured, suspended, revoked, canceled, terminated or, being assessed a fine, placed on probation or surrendering a license to resolve an administrative action. "Involved" also means being named as a party to an administrative or arbitration proceeding, which is related to a professional or occupational license. "Involved" also means having a license application denied or the act of withdrawing an application to avoid a denial. Include any business so named because of your actions in your capacity as an owner, partner, officer, director, or member or manager of a Limited Liability Company. You may exclude terminations due solely to noncompliance with continuing education requirements or failure to pay a renewal fee.
The California Department of Insurance website also refers to Section 1729, which is a change in background information and states the following:
"Background information" means any of the following: a misdemeanor or felony conviction; a filing of felony criminal charges in state or federal court; an administrative action regarding a professional or occupational license; any licensee's discharge or attempt to discharge, in a personal or organizational bankruptcy proceeding, an obligation regarding any insurance premiums or fiduciary funds owed to any company, including a premium finance company, or managing general agent; and any admission, or judicial finding or determination, of fraud, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty.
Does my situation apply here?
Thank you again.
I intend to send a letter to the EDD (below) and would appreciate your thoughts.
Thank you again for your help thus far.
I received Notice of Determination correspondence from the EDD dated 4/27/12. The determination letters stated that I was not entitled to receive unemployment insurance benefits under Code Section 1279 beginning 4/3/11 through 2/11/12. I agree with the Notice of Determination that the monies I received must be paid back. My main concern is the Notice of Determination letters refer to Section 1257(a). The letter states "Section 1257(a) - provides an individual is disqualified if he willfully makes a false statement or withholds relevant information to obtain benefits." I realize that ignorance of the law is not an excuse, but I did not willfully make a false statement or withhold information.
I spoke with my accountant in late March 2012 to complete my income tax return for 2011. I explained that I was receiving unemployment benefits and he was aware of my 1099 income and questioned whether or not I was reporting correctly on the Continued Claim Form. He indicated to me that he believed I was supposed to report all 1099 income on the Continued Claim Form. I immediately called the EDD to alert them of my mistake. I had a phone interview with an EDD interviewer on 4/9/12. At the request of the interviewer, I faxed a listing of my 1099 income received from 4/2/11 through 3/17/12.
During the period 4/2/11 through 3/17/12, I answered all claim form questions to the best of my ability. There was no willful intent to make false statements, representations or knowingly fail to disclose any facts. As soon as my accountant alerted me of my errors, I called the EDD to report my mistake
Again I understand my responsibility to pay back monies I have received to date.
My apologies. I forgot to accept.
What it all really comes down to is I want to make sure I do not face any issues with the California Department of Insurance. This is my life and all I really know how to do.
I wish that the EDD would see that by me taking the steps to contact them, this was a mistake.
From your experience, do you feel my letter above would be convincing enough or do you see this going to a hearing?
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