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Thank you for your post. I am a New Jersey licensed professional.If I may ask, why do you feel that you are entitled to the money if you admit and agree that the state made an error? Did they underpay you in the past? I am just trying to understand because an error in payment does not create an ownership right to the receiver of that error, regardless if it is a person or a state agency. If Iyou accidentially give me a check for $10,000 when you meant to write $100.00, I am not entitled to the difference. Those funds must be returned as otherwise it becomes an issue that could result in criminal charges for you, since they can charge you with fraud and then sue you civilly for the return of those funds. So no, it is not 'ok' to not return the funds, that was never something you were directly entitled to. Failure to return could truly expose you to very serious criminal charges, which I assume you would prefer to avoid.Good luck.
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