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§28-42-62.1  Fraud And Abuse. –

Published: 2015

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Labor and Labor Relations


Employment Security – General Provisions

SECTION 28-42-62.1

   § 28-42-62.1  Fraud and abuse. –

(a)(1) It shall be unlawful to do any of the following:

   (A) Make or cause to be made any knowingly false or

fraudulent material statement or material representation for the purpose of

obtaining or denying any benefits;

   (B) Present, or cause to be presented, any knowingly false or

fraudulent written or oral material statement in support of, or in opposition

to, any claim for benefits or petition regarding the continuation, termination,

or modification of benefits;

   (C) Knowingly assist, aid and abet, solicit, or conspire with

any person who engages in an unlawful act under this section;

   (D) Willfully misrepresent or fail to disclose any material

fact in order to avoid or reduce any contribution or other payment required of

an employing unit under chapters 42 – 44 of this title;

   (E) Willfully fail to report or provide false or misleading

information regarding ownership changes as required by regulations promulgated

by the department.

   (F) Willfully make or require any deduction from wages to pay

all, or any portion of, the contributions required from employers, or try to

induce any individual to waive any right under chapters 42-44 of this title.

   (2) For purposes of this section, "statement" includes, but

is not limited to, the receipt of unemployment benefits deposited to a direct

deposit account or electronic payment card, any endorsement of a benefit check,

application for registration, oral or written statement or report, proof of

unemployment, or other documentation offered as proof of, or the absence of,

entitlement to benefits or the amount of benefits.

   (3) If it is determined that any person concealed or

knowingly failed to disclose that which is required by law to be revealed;

knowingly gave or used perjured testimony or false evidence; knowingly made a

false statement of fact; participated in the creation or presentation of

evidence which he knows to be false; or otherwise engaged in conduct in

violation of this section, that person shall be guilty of a misdemeanor and

subject in criminal proceedings to a fine and/or penalty not exceeding one

thousand dollars ($1,000), or double the value of the fraud, whichever is

greater, or by imprisonment up to one year in state prison, or both.

   (4) Beginning October 1, 2013, whenever the director

establishes that an erroneous payment was made to an individual due to fraud

committed by the individual, that individual will be assessed a penalty equal

to fifteen percent (15%) of the amount of the erroneous payment. All penalties

assessed and collected under this subsection shall be immediately deposited

into the employment security fund.

   (b) The director, in consultation with the attorney general,

shall establish a form to give notice that the endorsement of a benefit check

sent or the receipt of unemployment benefits deposited to a direct deposit

account or electronic payment card pursuant to chapter 44 of this title is the

endorser's affirmation that he or she is qualified to receive benefits under

the employment security act. The notice shall be sent to all individuals who

are presently receiving benefits and given to those who file claims for

benefits in the future.

History of Section.

(P.L. 1995, ch. 158, § 2; P.L. 2013, ch. 120, § 1; P.L. 2013, ch.

130, § 1; P.L. 2015, ch. 101, § 1; P.L. 2015, ch. 113, §