Administrative penalty -- fraud or misrepresentation
(Miscellaneous 340.05)
1. Section
23-778
of the Employment Security Law of Arizona provides:
"Any person who, within the 24 calendar months immediately
preceding a week in which he files a valid claim for benefits, has made a false
statement or representation of a material fact, knowing it to be false, or
knowingly failed to disclose a material fact with intent to obtain benefits
under this chapter, shall be disqualified for the week for which the claim was
filed and for not more than 51 weeks immediately following such week as
determined by the Commission according to the circumstances in each
case."
2. A claimant shall
be disqualified under A.R.S. §
23-778,
for the periods shown in paragraph (3) below, if he willfully and knowingly
with intent to obtain benefits makes a false statement or representation or
conceals a fact, and the true fact concealed by the false statement or
nondisclosure is material
3.
Periods of disqualification are applicable as follows:
a. Four weeks disqualification for each week
of unreported earnings, up to a maximum of 52 weeks.
b. Ten weeks disqualification for false
statements on separation, eligibility, refusal of work and other
issues.
4. The effective
date of the administrative penalty is the beginning date of the first otherwise
valid waiting week or payable claim filed after the date of the determination
which is the basis for establishing that the claimant made a false
statement.
5. The terms used in the
above quoted section of the Law mean:
a.
False. A statement or representation is false if it is contrary to
fact.
b. Knowingly
i. A false statement or representation is
made knowingly if the person making it is aware that it is untrue or if he has
no reasonable basis for believing that it is true.
ii. A claimant knowingly fails to disclose a
fact if he deliberately withholds information which he knows should be
disclosed to the Agency.
c. Material fact
i. A fact is material if in some way it
affects the eventual outcome of a transaction. Thus, a fact which, if known,
would result in a determination adverse to the claimant, is a material
fact.
ii. A fact is not material if
the failure to disclose it or the intentional misstatement of it would not
cause injury. Thus, a fact which, if known, would cause no denial of benefits
to the claimant is not material.
d. With intent to obtain benefits
i. This phrase refers to the claimant's
purpose in knowingly making a false statement or representation or in knowingly
failing to disclose a material fact. The fact that concealment of a material
fact by willful misstatement or nondisclosure occurs in the course of claiming
benefits suggests that the claimant's intent was to obtain benefits. In the
absence of facts to indicate otherwise it may be assumed such was his
purpose.
ii. If facts are
discovered which indicate a different intent, the conclusions as to the
claimant's intent must be based on consideration of all the facts and not
merely on an assumption.
6. A claimant who inadvertently makes a
mistake or omission, or who does not understand his responsibility or the
questions asked him, and on the basis of information previously given him,
cannot reasonably be expected to understand his responsibility, shall not be
disqualified under A.R.S. §
23-778.
If at any time during the investigation, it becomes apparent that one of the
conditions required by the law, does not exist, the adjudicator must decline
application of the administrative penalty.
7. This rule rescinds Unemployment Insurance
regulation
R6-3-1808 (former 30-7).
