Unemployment Fraud Defense Lawyer in New Jersey

In New Jersey, both employers and employees can be charged with unemployment insurance fraud. This crime, punishable under various federal and state laws, involves allegations that the defendant submitted false information to an unemployment insurance company to obtain benefits or avoid certain tax consequences.

Whether you’ve been charged with federal or state unemployment fraud in New Jersey, you need an experienced NJ fraud crimes defense attorney Peter Katz. These are serious charges, often carrying hefty financial and criminal penalties.

Defining Unemployment Insurance Fraud

Unemployment fraud charges relate to any unlawful attempt to obtain unemployment benefits or avoid certain employer obligations. In most cases, prosecutors will charge claimants with unemployment fraud for engaging in the following:

• Submitting false information to the insurer, i.e., the reason for separation
• Receiving benefits while not ready and able to work
• Collecting benefits while knowingly ineligible
• Failing to report wages or income received while collecting benefits
• Using false identity information to collect unemployment insurance

For example, if you’re offered a one-week childcare job while receiving unemployment benefits in New Jersey, you must generally report this income to your unemployment insurer. This impacts typically your benefits, but it is required to avoid unemployment fraud claims.

Federal v. State Unemployment Fraud Charges

Both state and federal laws prohibit unemployment fraud, and your charges depend on the entity being defrauded.

New Jersey State Unemployment Insurance Fraud

Most unemployment fraud cases are charged at the state level. Allegations of unemployment fraud in New Jersey generally mean the state is accusing you of misrepresenting your employment status, identity, income, or eligibility to receive benefits from the NJ Division of Unemployment Insurance. Though serious charges still necessitate help from an experienced unemployment fraud defense attorney, Peter Katz, state charges often carry less significant penalties than associated federal charges.

Federal Pandemic/Unemployment Fraud and Mail Fraud Charges

The federal government may prosecute unemployment fraud in New Jersey under federal legislation such as the Pandemic Unemployment Fraud Enforcement Act or general statutes covering mail fraud (18 U.S.C. § 1341) or wire fraud. This depends on the source of unemployment benefits. Suppose you were a federal employee and fraudulently sought benefits under the Federal Unemployment Tax Act or through pandemic-era legislation. In that case, you could face charges in the N.J. federal district court. Federal charges often carry higher penalties, including jail time and fines.

Penalties Associated with Federal and State Unemployment Fraud Convictions

Dedicated criminal defense attorneys can generally negotiate favorable plea bargains and repayment options in state unemployment fraud cases, especially if you can show genuine remorse and financial need. However, federal charges often indicate the government believes you’ve committed high-value or widespread fraud. Charges under various federal schemes may involve significant fines and jail time. Additionally, most claimants convicted of unemployment fraud lose their right to obtain future unemployment benefits and must pay back any unlawful benefits with specific financial penalties.

Contact a New Jersey Unemployment Fraud Lawyer Immediately

Do not let unemployment insurance fraud claims destroy your financial future. Whether you’ve been charged with state or federal unemployment insurance fraud, including mail or wire fraud related to these claims, you need the help of a dedicated fraud crimes defense attorney, Peter Katz. Call his New Jersey office today at (609) 849-3179 or contact us online.