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Overpayments - Prosecution of Offenders

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, must serve a penalty that delays future benefits and runs the risk of being prosecuted in state or federal court. 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.

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The following are some examples of fraud:

• Not reporting earnings and/or tips.
• Not reporting work to pay off a bill or for rent.
• Not reporting cash for work.
• Not reporting self employment.
• Not reporting you enrolled in school.
• Failing to report that you refused work.
• Reporting that you were able and available to work when you were not.
• Reporting that you looked for work when you did not.
• Reporting the wrong last employer.
• Reporting a layoff when you were not.

Remember: When you file your weekly certifications and receive UI benefits, you are certifying that you:

• are entitled to the benefits.
• are the lawful recipient of the benefits.
• made no false statements.
• reported all earnings for the weeks you worked.
• were able and available for work.
• were actively seeking work as instructed.

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For specific information on a program, division or council, click on one of the following links: