Will I Go to Jail If Charged with EDD Fraud?
Unemployment insurance fraud in California, known as “EDD fraud,” occurs when someone submits false or incomplete information to secure unemployment benefits they are not entitled to.
This common white collar crime is defined under California Unemployment Insurance Code 2101, which says insurance fraud occurs when anybody makes a:
- “willful false representation, knowingly concealing, or the false identification to obtain, increase, reduce, or defeat any benefit under the state or federal programs.”
EDD fraud can also occur when an employer provides false information for their former employee to be denied benefits to which they are entitled.
Since the beginning of the COVID-19 pandemic, California has experienced a huge increase in unemployment insurance fraud cases.
The unemployment insurance program is designed to help people who lost their jobs by providing some financial relief until they can find other employment, but only some are eligible.
This program is operated by the California Employment Development Department, commonly known as the EDD.
This crime normally occurs when somebody provides false information, conceals material facts, or gives a fake identification with the intent to receive unemployment benefits. Our Los Angeles criminal defense attorneys will review the law below.
Common Examples of Unemployment Insurance Fraud
As stated, an unemployment insurance fraud crime occurs when somebody gives false information in a deliberate attempt to conceal information, or they give fake identification to receive California unemployment benefits.
There are numerous examples of how someone can commit unemployment insurance fraud, including the following:
- working while receiving unemployment compensation (double-dipping);
- not seeking a new job, but claiming you are on the form;
- use of false identification to receive benefits;
- failing to report you receive workers' compensation;
- attempt to receive benefits from another state
- give false information on the reasons you are unemployed;
- create a fictions employer and then list yourself eligible for benefits;
As noted, employers also violate California's unemployment insurance fraud laws when they give the EDD false information on why an employee was terminated or the amount of their wages with intent not to pay unemployment insurance compensation.
What are the Penalties for EDD Fraud?
A violation of Unemployment Insurance Code 2101 is a “wobbler” that can be charged as either a misdemeanor or felony crime.
A misdemeanor conviction carries up to one year in the county jail and a $1,000 fine.
If convicted of a felony case of unemployment insurance fraud, it's punishable by 16 months, 2 or 3 years in a California state prison, and a fine up to $20,000.
California Penal Code 550 is the general insurance fraud statute; the penalties will depend on the amount of loss.
A felony conviction for PC 550 carries a 2, 3, or 5-year jail sentence and a fine of up to $50,000, or double the amount of fraud.
Related California crimes
Penal Code 470 PC – forgery,
Penal Code 487 PC – grand theft,
Penal Code 118 PC – perjury,
Penal Code 182 PC – conspiracy.
What are the Defenses for EDD Fraud?
In some cases, your criminal defense lawyer might be able to negotiate a deal where you arrange to pay restitution to the California EDD if they agree not to file criminal charges against you.
If restitution to avoid charges is not an option, there are other common defenses to fighting unemployment insurance fraud charges.
No fraudulent intent
The prosecutor has the burden to prove, beyond any reasonable doubt, that you willfully presented false information with intent to defraud to receive benefits unlawfully.
We might be able to argue that you had a reasonable belief you submitted a legitimate unemployment insurance claim or that you accidentally gave EDD incorrect information.
Negotiating a plea bargain
In some cases, prosecutors have sufficient evidence to obtain a conviction for unemployment insurance fraud. In other words, your guilt is not in doubt.
In this situation, our criminal defense attorneys could attempt to negotiate a favorable plea bargain with the prosecutor.
Plea bargains can minimize liability in exchange for a “guilty” or “no contest” plea, in which the prosecutor agrees to a reduced criminal charge and sentence.
Developing a Defense Strategy
When it comes to messing around with the government and its funds, they tend to react very harshly if they believe you're involved in causing significant loss regarding the EDD.
So, if you're charged or being investigated for some EDD fraud and are accused of taking money you shouldn't have, you need to get a defense attorney immediately.
Having this type of conviction on your record and suffering the consequences of this type of conviction can be severe.
You could be facing prison time. You could be losing significant rights, and your future is in jeopardy. You've come to the right place. I've handled hundreds of EDD fraud cases. I have great results.
It really just depends on the circumstances of your case, how much money you're accused of taking, whether or not you have a defense in the case, and whether or not it's the type of case where we're going to mitigate things and try to get you the best result both as a charge and as a punishment.
Seeking the Best Possible Outcome for EDD Fraud
Please pick up the phone and ask for a meeting with Ronald Hedding. Also, I need you to be honest when we meet because I need all the facts to get you the best result.
You need to tell parts of the story and leave out other parts for a successful defense. Your defense attorney must have all the information, especially when discussing EDD fraud in Los Angeles, because these cases are often investigated thoroughly.
The federal and even the state governments move slowly. They have a lot going on, but they use a step-by-step process.
They will order bank records, investigate the person with a private investigator, and do all sorts of things before they make their move and arrest you.
So, if you know you're under investigation, you're going to need an attorney, and if you know you've done something wrong, you have a court date pending because you were arrested and had to post bail.
The first thing we're going to do is sit down, review everything, and ensure that we have the right strategy for moving forward.
We want our strategy in place as soon as possible because when it comes to EDD fraud, things can move very quickly. Rights can be taken away from you, assets can be frozen—all sorts of things can happen that you don't want to happen and that you need to be prepared for.
When you mess with the federal government, it's like messing with the mafia. They come in force. They've got unlimited funds, unlimited investigation, and unlimited power.
So, if you want to counter that — if you want to be ready for that and want to protect your rights and your future, you've got to have an attorney who's used to dealing with those types of authorities. We will develop a game plan that is sensible for you, your rights, your freedom, and your future.
