The Unemployment Insurance (UI) Benefit Payment Control Unit of the South Dakota Department of Labor and Regulation investigates cases of fraud and abuse in the UI program. Fraud is defined as knowingly giving false information or failing to give information to obtain or increase benefits.
A claimant who commits fraud must repay the UI benefits. If you committed fraud to secure or increase benefits a penalty of 50 percent of the amount of benefits obtained by fraud is applied for the first offense and a 100 percent penalty is applied for each subsequent offense. The department shall also impose four weeks of administrative penalty for each week that an individual willfully or fraudulently misrepresents a fact to secure or increase benefits. There is no expiration of this penalty and benefits will be denied during this penalty period.
If you know of anyone receiving UI benefits who may have committed fraud in order to receive or increase benefits, call the Benefit Payment Control Unit at 605.626.7649. Or visit the Reporting Possible Fraud page for information on how to report fraud.
The Benefit Payment Control Unit investigates and refers cases of fraud for prosecution. Cases of fraud are prosecuted under South Dakota Codified Laws 61-6-38 and 61-6-40 (misrepresentation to obtain or increase benefits). Penalties include up to one year in the county jail and/or a $1,000 fine for a misdemeanor, or up to two years in the state penitentiary and/or $2,000 fine for a felony.
The following are some examples of fraud:
Remember: When you file your weekly certifications and receive UI benefits, you are certifying that you: