Any person who knowingly makes a false statement or representation, deliberately fails to disclose material facts; or knowingly withholds information in order to obtain unemployment benefits has committed fraud and is punishable by law. After the discovery of benefit fraud, a determination will be issued to the applicant stating unemployment benefits were obtained by fraud and that fraudulently received benefits plus penalties and interest must promptly be repaid. The determination is final, unless the applicant files an appeal within 20 calendar days.

Fraud penalties include:

• A penalty equal to 40 percent of the benefit amount fraudulently obtained.
• Interest rate of 1-1/2 percent per month.
• Applicants are ineligible for unemployment benefits until the fraud overpayment, penalties and interest are paid in full.

In addition, penalties for fraud may include:

• Administrative penalty making applicants ineligible for unemployment benefits for 13 to 104 weeks.
• Criminal prosecution under federal and state law.

Refer to Minnesota Law, §268.18 Subd.2 and §268.182 subd.2 (2009), for more details.

Report fraud or benefit violations using the online Fraud Report.