1. (1) Each of the following elements of fraud must be proved to establish an intentional misrepresentation sufficient to constitute fraud under Subsection 35A-4-405(5). The elements of fraud are materiality, knowledge, and willfulness.

   1. (a) Materiality.

      1. (i) Materiality is established if a claimant makes false statements or fails to provide accurate information to obtain:

         1. (A) any benefit payment to which the claimant is not entitled; or
         2. (B) waiting week credit which results in a benefit payment to which the claimant is not entitled.
      2. (ii) A benefit payment received by fraud may include an amount as small as one dollar over the amount a claimant was entitled to receive.

   2. (b) Knowledge.

      1. (i) Knowledge is established if a claimant knew or should have known the information submitted to the Department was incorrect or that the claimant failed to provide information required by the Department.
      2. (ii) The claimant does not have to know that the information will result in a denial of unemployment insurance benefits or a reduction of the benefit amount.
      3. (iii) Knowledge may also be established if a claimant recklessly makes representations knowing the claimant has insufficient information upon which to base such representations.
      4. (iv) A claimant has an obligation to read material provided by the Department and to ask a Department representative if the claimant has a question about what information to report.

   3. (c) Willfulness.

      1. (i) Willfulness is established if a claimant files claims or other documents containing false statements, responses, or deliberate omissions.
      2. (ii) If a claimant delegates the responsibility to provide information or allows access to the claimant's Personal Identification Number (PIN) so that someone else may file a claim, the claimant is responsible for the information provided or omitted by the other person, even if the claimant had no advance knowledge that the information provided was false or that important information was omitted.
      3. (iii) The claimant is responsible for securing the debit card (card) issued by the Department. Securing the card means that the card and the PIN are never kept together, the card is kept in a secure location, and the PIN is not known by anyone but the claimant.
      4. (iv) If a claimant loses the claimant's card, the claimant must report the loss of the card to the Department and change the claimant's PIN immediately even if the claimant is not currently filing weekly claims for unemployment insurance benefits. If the claimant fails to report the loss of the card and change the PIN immediately, or fails to secure the card, the claimant will be liable for claims made and money removed from the card.
2. (2) The Department relies primarily on information provided by the claimant when paying unemployment insurance benefits. Fraud penalties do not apply if the overpayment was the result of an inadvertent error. Fraud requires a willful misrepresentation or concealment of information to obtain unemployment insurance benefits.
3. (3) The absence of an admission or direct proof of intent to defraud does not prevent a finding of fraud.
4. (4) A claimant is required, under Section R994-403-114c, to immediately notify the Department if the claimant is incarcerated. Upon notification, the Department will deny unemployment insurance benefits to the claimant until the claimant notifies the Department of the claimant's release from incarceration. If a claimant fails to notify the Department of the claimant's incarceration, any claims made during the incarceration period will be considered fraudulent.

KEY: overpayments, unemployment compensation

Date of Last Change: March 31, 2022

Notice of Continuation: May 2, 2022

Authorizing, and Implemented or Interpreted Law: 35A-4-406(2); 35A-4-406(3); 35A-4-406(4); 35A-4-406(5)