(a) False statements and representations. Section 8507(a) of the Act
provides that if a State agency, the Department, or a court of competent
jurisdiction finds that an individual--
(1) Knowingly has made, or caused to be made by another, a false
statement or representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact; and
(2) As a result of that action has received an amount as UCFE to
which the individual was not entitled; the individual shall repay the
amount to the State agency or the Department. Instead of requiring
repayments, the State agency or the Department may recover the amount by
deductions from UCFE payable to the individual during the 2-year period
after the date of the finding. A finding by a State agency or the
Department may be made only after an opportunity for a fair hearing,
subject to such further review as may be appropriate under Sec. 609.7.
(b) Prosecution for fraud. Section 1919 of title 18, United States
Code, provides that whoever makes a false statement or representation of
a material fact knowing it to be false, or knowingly fails to disclose a
material fact, to obtain or increase for himself or for any other
individual any payment authorized to be paid under chapter 85 of title
5, United States Code, or under an agreement thereunder, shall be fined
not more than $1,000 or imprisoned not more than one year, or both.
(c) Absence of fraud. If a State agency or court of competent
jurisdiction finds that an individual has received a payment of UCFE to
which the individual was not entitled under the Act and this part, which
was not due to a false statement or representation as provided in
paragraph (a) or (b) of this section, the individual shall be liable to
repay to the applicable State the total sum of the payment to which the
individual was not entitled, and the State agency shall take all
reasonable measures authorized under any State law or Federal law to
recover for the account of the United States the total sum of the
payment to which the individual was not entitled.
(d) Recovery by offset. (1) The State agency shall recover, insofar
as is possible, the amount of any overpayment which is not repaid by the
individual, by deductions from any UCFE payable to the individual under
the Act and this part, or from any unemployment compensation payable to
the individual under any Federal unemployment compensation law
administered by the State agency, or from any assistance or allowance
payable to the individual with respect to unemployment under any other
Federal law administered by the State agency.
(2) A State agency shall also recover, insofar as is possible, the
amount of any overpayment of UCFE made to the individual by another
State, by deductions from any UCFE payable by the State agency to the
individual under the Act and this part, or from any unemployment
compensation payable to the individual under any Federal unemployment
compensation law administered by the State agency, or from any
assistance or allowance payable to the individual with respect to
unemployment under any other Federal law administered by the State
agency.
(3) Recoupment of fraudulent overpayments referred to in paragraph
(a) of this section shall be limited to the 2-year period stated in that
paragraph. Recoupment of fraudulent overpayments referred to in
paragraph (b) of this section, and nonfraudulent overpayments referred
to in paragraph (c) of this section shall be subject to any time
limitation on recoupment provided for in the State law that applies to
the case.
(e) Debts due the United States. UCFE payable to an individual shall
be applied by the State agency for the recovery by offset of any debt
due to the United States from the individual, but shall not be applied
or used by the State agency in any manner for the payment of any debt of
the individual to any State or any other entity or person except
pursuant to a court order for child support or alimony in accordance
with the law of the State and section 459 of the Social Security Act, 42
U.S.C. 659.
(f) Application of State law. (1) Except as indicated in paragraph
(a) of this section, any provision of State law
that may be applied for the recovery of overpayments or prosecution for
fraud, and any provision of State law authorizing waiver of recovery of
overpayments of unemployment compensation, shall be applicable to UCFE.
(2) In the case of any finding of false statement or representation
under the Act and paragraph (a) of this section, or prosecution for
fraud under 18 U.S.C. 1919 or pursuant to paragraph (f)(1) of this
section, the individual shall be disqualified or penalized in accordance
with the provisions of the applicable State law relating to fraud in
connection with a claim for State unemployment compensation.
(g) Final decision. Recovery of any overpayment of UCFE shall not be
enforced by the State agency until the determination or redetermination
establishing the overpayment has become final, or if appeal is taken
from the determination or redetermination, until the decision after
opportunity for a fair hearing has become final.
(h) Procedural requirements. (1) The provisions of paragraphs (c),
(d), and (g) of Sec. 609.6 shall apply to determinations and
redeterminations made pursuant to this section.
(2) The provisions of Sec. 609.7 shall apply to determinations and
redeterminations made pursuant to this section.
(i) Fraud detection and prevention. Provisions in the procedures of
each State with respect to detection and prevention of fraudulent
overpayments of UCFE shall be, as a minimum, commensurate with the
procedures adopted by the State with respect to State unemployment
compensation and consistent with the Secretary's ``Standard for Fraud
and Overpayment Detection'' (Employment Security Manual, part V, section
7510 et seq.).
(j) Recovered overpayments. An amount repaid or recouped under this
section shall be--
(1) Deposited in the fund from which payment was made, if the
repayment was to a State agency; or
(2) Returned to the Treasury of the United States and credited to
the current applicable appropriation, fund, or account from which
payment was made, if the repayment was to the Department.
