Unemployment insurance fraud is a crime that is on the rise in many states. The types of fraud range from an individual working off the books while collecting unemployment benefits, to complex identity theft rings filing fraudulent claims.
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New York State
Prosecution for unemployment fraud is up 31 per cent in the first half of 2010 in New York. The state prosecuted 481 unemployment fraud cases during that period. It is a felony to falsify unemployment paperwork in New York.
In Michigan unemployment fraud cases are up 40 per cent from the 2008 figures. Michigan prosecuted 3,206 cases in 2009. Unemployment fraud is a misdemeanour punishable by up to one year in jail and a fine of up to four times the amount of the fraud.
Making fraudulent unemployment claims is a misdemeanour in Wisconsin. Penalties for conviction can result in fines ranging between £65 and £325 and up to 90 days in jail, or both. In addition, financial restitution must be made to the state for money fraudulently obtained.
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