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Unemployment Fraud Investigation

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bluebluewindows

Junior Member
What is the name of your state (only U.S. law)? Oregon

I am being investigated for falsely claiming unemployment benefits. I just received the letter yesterday, and have been asked to call the investigator within a week. Of course I'm going to call, and of course I'm going to try and speak with an attorney before I do call. I don't want to unintentionally say something incriminating without getting some advice first. But I'd also like to get as much information possible, which is why I'm posting here. I'm a little wary of disclosing details here, as this is my first time posting, and not sure exactly how safe my information is, but let's say I didn't contest the charges (of willful misrepresentation), what are the consequences beyond financial restitution that are likely? The maximum amount I would be liable for is over $2000, with penalties adding up to $3000. If they determine that it is willful misrepresentation, and I do not try to lie or get out of it, is there a chance that they will be lenient and allow me to repay the $3000 in payments? I am only partially employed right now (most of the problem has to do with misreported earnings) and can barely pay rent, much less pay the fines. I'm not making any excuses, I'm just saying I can only pay what I am liable for once I actually have a job to do so. But I have never been in this situation before. I have no criminal record, never been in trouble with the law, never even got a speeding ticket in 20 plus years, so I am rather naive about what I'm facing. If I do have to pay it all now, how does the government get money from someone who has none? This is a real (non-rhetorical) question. I'm assuming they can, I just have no idea how. Also, am I facing potential jail time? I realize I may have to make restitution, but obviously I want to avoid jail time if at all possible.

Thank you in advance for your time, consideration and advice.
 


commentator

Senior Member
At the present time, I disagree that you need to retain an attorney and clam up. That's what you do when you've been charged with a crime. Remember, you are NOT dealing with the criminal justice system here, you are dealing with an agency, and it is an agency that has not even yet given you an overpayment decision. You have not been charged with anything yet, even by the agency.

The investigator is trying to establish exactly what did happen and exactly how much you are overpaid. And the more you "play coy" with them, try to act like you're Al Capone being charged with income tax evasion, unwilling to admit to doing anything, my attorney will speak for me, yada yada the more likely you are to get on their "very favorite clients" list, and end up being recommended to the DA's office for actual criminal prosecution. They only recommend for prosecution the ones for which they can get max publicity, the hard core cases, the people who've done it repeatedly, or who really act like jerks and try to deny everything.

In no state does the unemployment system legally prosecute every fraud case they deal with in a year. It would boggle the court system to the point no real criminals could be prosecuted for much more serious crimes. What they are primarily interested in is getting their money back. Since this WAS criminal fraud, it did not happen due to a changed decision by the agency or any oversight on their part, there will be penalties as well as the simple overpayment of the illegally drawn benefits.

But do not try to be cute or coy in your work with the fraud investigator. THEY KNOW YOU DID IT. Depending how you did it, they may have all the records in front of them before they even speak to you the first time. They don't give a hoot what you will admit to or won't admit to. They don't even care if you "express remorse" or try to claim you misunderstood what you were doing, or planned on paying it back later when you got on your feet. They've heard it all before. The system for catching unemployment fraud is very thorough and cross matches with almost everything that relates to your finances. It is not a needs based program, so you do not have any defense in that you were so desperate for money that you lost control of your senses. It has always been a marvel to me that people who otherwise never would consider breaking the law in other areas will try to slide by on unemployment with the assumption that they're the first person who ever thought of doing this, and that they'll get away with it.

So don't think you're going to be lying your way out of it. Don't think there is a "better" way to present your case that will get you in more or less trouble or get you sympathy or leniency. The best way to do it is to work with them. The rules are fixed but they do have quite a bit of leeway in how you are dealt with. Be nice, be cooperative, be remorseful just a little bit. It can't hurt. Much wiser than pissing them off with evasions.Even if you say you absolutely didn't do it, that they have no proof, (which they do, anyhow) they're still going to hold you liable if it was done on your unemployment account and it was your claim (as many people have found out after a wife or other family member committed unemployment fraud with their claim).

The best thing you can do is meet with this investigator, forget the attorney, be perfectly honest and frank with them about what you did. You did it, of course, thinking you were going to get away with it. You were wrong. You've been caught. What will it take to make this right?

Of course if you can do it, they'd rather you paid the money right back to them as soon as you receive an overpayment decision, which is the next step in the process after the investigator completes their investigation. But if you can't do that, you certainly can offer to make monthly payments on the money until it is repaid. Your going out and hiring an attorney may make your talk of financial strain a little less believable, make them less sympathetic to your poverty complaints.

If your income is such that you absolutely cannot pay the money back at the present time, then you should request a waiver of payment until such a time as you are able to make the repayments. The system understands that unemployment fraud is frequently committed by unemployed people, and that you cannot get blood out of a turnip. They're not interested in making your life miserable or sending you to debtor's prison for a minor crime. They're interested in eventually getting their money back. They could possibly, in your state, garnish your wages, or take your tax refunds to recoup their money, even without prosecuting you.

If you ask for a waiver, they'll require very detailed information about your income and the income and assets of every person in your household. Be sure you are honest with them. Be sure when offering to make monthly payments that you do not "overpromise" In other words, don't say you'll pay them $200 a month and then default. Better to promise $50 a month and be faithful in your payments. That will protect you from being on their "most likely to be prosecuted list." Don't dodge their calls or refuse to cooperate, even if you cannot pay. Work with them.

But don't be stupid. Re read everything that has been brought up here recently about unemployment fraud on this board. The answers are always the same. They don't really prosecute every case, you do not need an attorney to deal with the agency in the first steps of this investigation, and you will, if you cooperate with them, repay the money reasonably, you'll not have any kind of record or be charged with any criminal offense.
 
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