Applicant Fraud

Any person who knowingly makes a false statement or representation, deliberately fails to disclose material facts, or knowingly withholds information in order to obtain Minnesota Unemployment Insurance (UI) benefits has committed fraud and is punishable by law. After the discovery of benefit fraud, a determination will be issued to the applicant stating that the unemployment benefits received were obtained fraudulently. The applicant has the right to appeal a determination within 20 calendar days, as defined by Minnesota Unemployment Insurance law.

Penalties for Committing Fraud

A monetary penalty of 40% of the total amount overpaid is assessed on all overpayments established as a result of a fraudulent act. In addition:

• Interest is added to any outstanding overpayment or penalty amount at a rate of 1.5% per month.
• An additional administrative penalty of ineligibility of up to 104 weeks may be assessed for false representation or concealment of facts.
• Some cases are prosecuted under Minnesota Statutes that provide for prosecution of felony theft which may include penalties of up to a $10,000 fine and/or 10 years in jail.

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

Report fraud or benefit violations using the online Fraud Report.