Michigan Unemployment Fraud Penalties

REMEMBER:

IT IS NOT ILLEGAL TO WORK WHILE YOU ARE COLLECTING UNEMPLOYMENT BENEFITS.

You are able to work at a job and make a certain amount of money while still collecting unemployment benefits. When you apply for unemployment, this amount will be determined, and how this works will be explained to you by your unemployment counselor.

ALSO REMEMBER:

IT IS A CRIME TO COLLECT UNEMPLOYMENT BENEFITS WHEN YOU ARE NOT ELIGIBLE FOR THEM

If you willingly collect unemployment benefits when you are not eligible for them, and when you don't meet all the requirements - this is considered unemployment fraud and there are stiff penalties for committing unemployment fraud.

Unemployment Fraud Penalties include some or all of the following:

1. Fine. You may have to pay back the unemployment money you collected (this is called restitution) and pay a large criminal fine.
2. Jail. You may be sent to jail if you are found guilty and convicted of unemployment fraud.
3. Probation.

Still Have Questions?

To go back to the Michigan Unemployment FAQ Page, click here: Michigan Unemployment FAQ

To go the main Michigan Unemployment page, click here: Michigan Unemployment

Maybe We Can Help: 

If you can't find the answer to your question, you can fill out the comment form below and I will answer your question ASAP, or you can ask the The Unemployment Expert or you can post your question in the Unemployment Forum

Comments  

 
# Monica 2011-12-06 09:10
In the state of Michigan, I received a letter stating I was over pais in benefits 9000 and I had no clue about this prior to receiving a letter from fraud department. I spoke with a prosector and she was so rude and arrogant and did not listen. She told be I will recieve 2 years probation and she does not care and they don't either that I lose my job. I can't pay anything back if I lose my job because I will be terminated, I can not be employed and be on probation. I also had no clue that I was blamed for committing fraud to 2 years later, if I had known that the representive that set up my benefits would give me incorrect information, I would have never received benefits she clearly told me I can receive full benefits because I was part time and did not make that much an hour. Yes, I agree I should have read my handbook or dowloaded one. Will I automatically receive probation? I feel like this is wrong, not once did unemployment send me anything about this prior to submitting to fraud department. Did I suppose to have a chance to reply and let them know my side, honestly I did not know I was committing fraud but so many individuals do this they believe everyone is committing and doing this delibertly.
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# silvia 2012-01-12 19:15
i need advised my husband got a letter saying we have to pay back i know we got $$$$ we are willing to pay but from 3,000 they went to 10,000.... thats to much bc they do 4 times so thats how we got 10,000 my question is im willing to pay but if they could go down???? please i need help can they work something out with us ??? please help i need answers we only got 30 days so please email me and let me know what can we do ..
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# Susan 2012-01-18 01:16
A perosn who has drawn unemployment throughout the years was incarcerated in Dec of 2011 and numerous other times while he was incarcerated his wife called in and collect and cashed the checks in Dec 2011 and other times. County records will confirm other dates he was in jail and his wife collected them, signed and cashed them.

Would the wife be guilty of fraud for cashing them and would she be guilty of forgery in the state of Michigan and what are the penalties? Would they go back over the years and check how many times this fraud has occurred?
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# Danny 2012-02-03 11:35
I claimed unemployment for 6 mo while i worked It was unententional i was laid off and would be called back daily,I never stopped my claim because i never knew if i would have to work from day to day. I recieved a letter saying the dats i was paid and had earnings .Should i sign this .what are the penalties
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# Terry 2012-02-17 11:26
in 2005 I got laid off and my house note got behine. I tryed to start a cleaning service while on unemployment. When I file my taxes I soon received a letter requesting repayment for unemployment money received. I didn't have employment then so they took me to court. I received two year probation. How every I have finished college now and I'm looking for employment. I was told the unemployment matter was civil and therefore not show on a background check. Is this true?
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# #Rita 2013-03-06 08:06
Unemployment fraud is a misdemeaner offense in Michigan, so its criminal. As a rule of thumb, anything that comes with jail time or probation is a criminal mattter.
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# Debbie 2012-08-21 15:32
Boyfriend is claiming unemployment while working under the table for a large employer. He started working there in February 2012 and is still claiming benefits not noting any income. Would this be considered fraud?
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# Kris 2012-12-26 18:01
I received a letter in the mail stating that i had 12 days to respond to a claim that i collected unemployment while working, this past year, i did not understand the lertter, i took it to my local unemp[loyment center for help, and the said i was in huge trouble, mean while, i lost my job back in July of this year, and went back to work in Octoberr & lost my job suddendly a week before Christmas of this year, i stopped calling in to claim any more unemployment, the week i lost my job, i told the representative that i was willing to repay back anything I might have to, meanwhile i am unemployed again & I want to make another claim, this is a mess, the letter said i could go to jail, but i am willing to cooperate, I have lost my job 8 -10times in the past 3 years for no reason, i am willing to pay back(resitituti on) but am afraid to file another claim for the last job i worked, Am I still entitled to anymore unemployment,I am still unemployed?Some nights i do not want to wake up in the morning due to this mess,I kept calling in so in case i lost my job, i would have the unemployment coming in, and i did lose my job at the end of July,and the week before Christmas I sent back the letter with the info they wanted by the time alotted.
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# Dave 2013-01-04 19:55
I have been collecting unemployment for some months now and seeking work. I started to work part time near the end of my benefits. When I checked in with Marvin one day, I did not report my wages. I was worried they would cut me off and I thought I needed the money. I was making 100 dollars per week at that point. The next time I checked in, I told them I made some money ( 200 total, when in fact I had earned 400 ) ...and then I did it once more...then it hit me. I was being fraudulent. I did not even really think of the consequences when I was doing it. I simply ignored it, thinking that I could pay it back when it was all done. After I did this for the last time, I called them and told them what I had done. I just want to pay the money back, but started to read the penalties about fraud and am now quite worried that I could go to jail. Does anyone know what will happen in the most common circumstances in this situation?
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# kim 2013-01-30 17:05
I am appealing a unemployment decision and I keep getting letters that I still have weeks left that I can collect unemployment benefits. Once I get a decision back from the state do I have to pay back even if I still dont have a job?
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# Sandra 2013-06-26 05:32
I am a postal employee, since 1995, and was a victim of the NRP process. I was told the day I received my "no work avail." letter, by chief steward and PM to go file for unemployment. I did. I did explain at Unemployment Office my situation; that I am able to work, I have certain restrictions, and my work has put me off, and that I was not sure if I would get OWCP. I was told to apply, I was approved and received benefits. Concurrently, and shocked I received payments from OWCP. But, not w/o constant worry of being cut-off because I had to follow their rules. I was being forced to be "vocationally rehabbed". I did not claim to MARVIN that I had income. ( Big Mistake!!) But, I honestly did not feel secure in that I would get any $ from OWCP because of fear from what has happened in the past. Long story, but they owe me over 20 g's. And the constant intimidating letters of being cut-off for failure to do this or that. I was attending school, in order to comply when I was given job offer @ different location (way further away), and was kinda forced, once again, to accept, or get denied OWCP. Ironically, I get investigated for Unemployment Fraud, right when I get notice of r.t.w. I was found guilty, (have court date), but already guilty, because I did not claim to Marvin. I have 2 ?'s for u. 1.) Did I commit fraud? I did not knowingly/purposely defraud them in my eyes. I have done a lot of research now, and understand its mostly black or white, but I seem to fall in that nasty gray area. Det. said I was "guilty" at investigation, when I told him that my PM told me to file 4 un. ben. and I replied back to him that how, when u guys r going to say I can not work, he stated, "They don't look into it that far". Det. seems to think that is an admission of guilt, I should have known better just from him saying that. I took it as, Unemployment does not look into if you are eligible to work. As I stated before, I was eligible, they used the NRP as a loophole to get rid of me, as I had 3 combined EEOS that were ongoing, (still r) since 08, (this happened in 10').
2.) I found out that the OIG has 20 other postal employees in my district that they are investigating for same thing. Reflecting back on all that has happened, and gut feeling, tells me that this is just an "extension" of the NRP process. I go back to work, and then get investigated ( and already guilty w/o trial)? Unfortunately, I can not find out who these others are to compare notes, but I feel as this could be entrapment. Is that possible? The p.o. has me really p.o.ed!!!!!!
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