Fraud Penalties on Federal and State Benefits

PURPOSE: This rule implements an amendment to the federal Social Security Act made by Section 251 of the federal Trade Adjustment Assistance Extension Act of 2011, Public Law No. 112-40, mandating that states assess a monetary fraud penalty on both state and federal unemployment benefits in an amount of not less than fifteen (15%) percent of the amount of the fraudulent payments and that the money thereby collected be deposited into the state’s unemployment compensation fund. (1) Any individual who receives state or federal unemployment benefits by intentionally misrepresenting, misstating, or failing to disclose any material fact, or by intentionally offering misleading information, has committed fraud and such individual shall be assessed a penalty as provided in subsection 9 of section 288.380, RSMo. (2) With regard to payments made toward a penalty amount assessed pursuant to subsection 9 of section 288.380, RSMo, an amount equal to fifteen percent (15%) of the total amount of benefits fraudulently obtained shall be immediately deposited into the state’s unemployment compensation fund, and the remaining penalty amount shall be credited to the special employment security fund. AUTHORITY: sections 288.220 and 288.390, RSMo 2000.* Emergency rule filed Aug. 22, 2013, effective Oct. 1, 2013, expired March 29, 2014. Original rule filed Aug. 22, 2013, effective Feb. 28, 2014. *Original authority: 288.220, RSMo 1951, amended 1955, 1961, 1963, 1967, 1971, 1995, and 288.390, RSMo 1961.