I'm Doug, and I'm very sorry to hear of the situation. My goal is to provide you with excellent service today.
While there was a stated policy which was broken, if this person who directed you to go ahead and violate the policy for one reason or another was a Manager and your supervisor, then if the violation directed by your manager caused you to be terminated, then you should be able to show that you are not fired for cause and that you are eligible for unemployment benefits.
You will definitely want to subpoena the supervisor/Manager that directed you to continue with the transaction once you learned that the customer you were waiting on was a friend of a friend of a friend.
You do not need an attorney to pursue your appeal, though it is generally to your benefit to use one---simply because they are familiar with the process of the appeal.
This is an administrative hearing and the Hearing Officer will assist you in getting through the hearing. You have a right to present testimony, and any evidence you have to rebut the reason why you are being denied. If your former employer has documentary evidence that will assist you in your appeal you can ask the UI Hearing Office to issue a subpoena to your company on your behalf for the specific documents that you need to present your case. You can also subpoena witnesses.
Here is a link to quite a bit of information which can help you prepare for the hearing. I realize that the site is located in a state other than your particular state of residence, however, unemployment appeals across the country all essentially the same in format and therefore the information here is applicable to your situation as well:
If you can show through your own testimony, and that of the Manager who you will want to subpoena, then based on your stated facts it would appear that you have an excellent chance of winning your benefits. The simple fact is that a Manager has the ability to bend the rules when it is in the best interests of the employer. And let's face it---the account of a friend, of a friend, of a friend is hardly the sort of thing that is going to lead to abuse, and the fact that as soon as you determined that is what you had, and you reported it, it would have been a terminatable offense for you not to follow the direction of your Manager and complete the transaction. It was a management decision and you should NOT be held responsible.
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I wish you the best in 2013,