NRS § 612.445 makes it a Nevada crime to commit unemployment insurance fraud (UIF), which is fraudulently obtaining unemployment insurance benefits that you are not entitled to.
Unemployment insurance fraud can be a misdemeanor or felony depending on how much money you wrongfully received. In every case, you must pay restitution back to the Employment Security Division of the Department of Employment, Training and Rehabilitation.
Five common examples of unemployment insurance fraud include:
- Collecting unemployment while secretly working at another job or lying about looking for another job.
- Collecting other monies (such as a pension) without reporting it to the state while on unemployment insurance.
- Using a fake name, social security number, etc., to receive unemployment benefits while continuing to work elsewhere.
- Fabricating an employer and claiming to be a laid-off employee in order to receive unemployment benefits.
- Claiming to have been laid off after being fired for cause, in order to obtain benefits.
It may be possible for a skilled defense attorney to get UIF charges dismissed or reduced through a plea bargain.
In this article, our Las Vegas criminal defense attorneys will address the following key issues regarding unemployment insurance fraud in Nevada.
- 1. Elements of NRS 612.455
- 2. Penalties
- 3. Defenses
- 4. Immigration Consequences
- 5. Record Seals
- Frequently Asked Questions
- Additional Reading
1. Elements of NRS 612.455
For you to be convicted of unemployment insurance fraud in Nevada, prosecutors must prove beyond a reasonable doubt that you lied in order to obtain or increase your unemployment insurance benefits by either:
- failing to report earnings properly;
- filing a claim for benefits using the social security number, name or other personal identifying information of another person;
- filing a claim for or receiving benefits and failing to disclose any compensation for a temporary total disability or a temporary partial disability or money for rehabilitative services; or
- any other intentionally fraudulent act or omission.1
Example: Max was fired from his blackjack dealer job at the Mirage for stealing chips from the table. Max then files for unemployment insurance and claims that he was laid off due to downsizing. The Nevada Employment Security Division investigates and discovers that Max was lying about how he lost his job. They inform the Las Vegas Metropolitan Police, who then arrest Max and book him at the Clark County Detention Center for unemployment insurance fraud.
Note that Nevada has a separate statute prohibiting employers from fraudulently trying to reduce or eliminate their payment requirements.2 Typical scenarios of unemployment insurance fraud perpetrated by employers are:
- lying about why an employee was terminated or about their salaries in order to avoid paying out insurance money; or
- intentionally withholding employee deductions and not paying them to the state.
Unemployment insurance fraud can be a felony or a misdemeanor.
Investigation and Prosecution of UI Fraud in Nevada
The Nevada Employment Security Division is skilled at finding “red flags” in UI applications that suggest you are lying. If the Division believes fraud may have occurred, the case will be referred to law enforcement.
Note that if you make multiple false statements in support of one UI claim, you face prosecution for just that one claim, not for the multiple misrepresentations.3
Example: Stella is employed full-time in Mesquite but is struggling to pay her bills. She fills out an unemployment insurance application and claims to have been laid off. Later the Nevada Employment Security Division calls Stella to ask some questions, and Stella lies about not having a pension.
If the Division discovers her two misrepresentations, the Mesquite Police could arrest her and book her at the Mesquite Detention Center for UI fraud. Even though she lied twice – about being laid off and not having a pension – she faces only one UI fraud charge. This is because Stella made only one UI claim, and both lies were in support of that claim. Had Stella falsely applied for unemployment insurance on two separate occasions, then she could face two counts of UI fraud.
Eligibility for Unemployment Insurance
The purpose of unemployment insurance (UI) is to help sustain you if you are recently laid off while you search for new jobs. Taxes paid by employers fund the program.
In order to be eligible for UI in Nevada, you must meet the following qualifications:
- You are unemployed or employed less than full-time;
- You have been out of work through no fault of your own;
- You must be available to search for and accept employment customary to your normal occupation;
- You must not refuse suitable work when offered;
- You must be physically and mentally able to work; and
- You must have worked long enough to qualify for unemployment benefits.4
2. Penalties
NRS 612.445 treats UIF as a type of theft crime in Nevada. The punishment turns on the amount of money you allegedly obtained unlawfully, as the following table shows.
| Benefits Fraudulently Obtained Through UIF | Punishment in Nevada |
| Less than $1,200 | Misdemeanor: Up to 6 months in jail and/or $1,000, plus repayment of the benefits plus 15% |
| $1,200 to less than $5,000 | Category D felony: 1 to 4 years in prison, up to $5,000, and repayment of the benefits plus 15% |
| $5,000 to less than $25,000 | Category C felony: 1 to 5 years prison, up to $10,000, and repayment of the benefits plus 15% |
| $25,000 to less than $100,000 | Category B felony: 1 to 10 years in prison, up to $10,000, and repayment of the benefits plus 15%. |
| $100,000 or more | Category B felony: 1 to 20 years in prison, up to $15,000, and repayment of the benefits plus 15% |
Also, Nevada’s Department of Employment may impose an additional fine based on the amount of benefits that you unlawfully received through the UI fraud:
- Greater than $25 to $1,000: 5% of the restitution amount.
- Greater than $1,000 to $2,500: 10% of the restitution amount.
- Greater than $2,500: 35% of the restitution amount.
Note that if you are convicted of UIF, you will be barred from receiving future unemployment insurance fraud benefits until your benefits are repaid or until 52 weeks have passed since the fraudulent claim was filed (whichever is later). However, the Department can make exceptions in certain situations.5
Sometimes people are falsely accused of violating NRS 612.445 due to a clerical error.
3. How can I fight the charges?
Here at Las Vegas Defense Group, we have represented literally thousands of people charged with fraud, including unemployment insurance fraud. In our experience, the following three defenses have been very effective with prosecutors, judges, and juries at getting NRS 612.445 cases reduced or dismissed.
1) There Was Administrative Error
Nevada judges know that government agencies are clumsy bureaucracies that make mistakes and may blame innocent people. The Nevada Employment Security Division handles tens of thousands of cases, and inevitably, some fall through the cracks.
If we can show that you are a victim of a clerical error, the UI fraud case should be dropped.
2) You Lacked Fraudulent Intent
Nevada judges are also aware that applying for unemployment insurance is confusing. It is easy for well-meaning people to make honest mistakes, especially for Nevadans who speak little or no English.6
Typical errors are writing the wrong Social Security number, miscalculating earnings, and forgetting to report freelance income. As long as the prosecution cannot demonstrate beyond a reasonable doubt that you acted with intent to defraud, the UI fraud charges should be dismissed.
3) You Are the Victim of Mistaken Identity
In some UIF cases, you may be the victim of identity theft. The real culprits stole your personal information in an attempt to collect benefits for themselves.
Typical evidence in these cases includes electronic records, surveillance video, and recorded communications. If the prosecution cannot show that you are the one who propagated the fraud, then the case should result in a dismissal.
There are many possible ways to fight UIF charges.
4. Immigration Consequences
UIF in Nevada is likely a deportable crime, especially if you obtained several thousand dollars in unearned benefits. Aliens facing NRS 612.445 charges are encouraged to consult with experienced counsel who may be able to negotiate a charge reduction to a non-deportable offense.
5. Record Seals
If you have your UIF charges dismissed, you can pursue a criminal record seal right away in Nevada. Otherwise, the waiting period to apply for a record seal depends on what category of crime you were convicted of.
In Nevada, category B or C felony convictions of UIF can be sealed five years after the case closes. Meanwhile, misdemeanor convictions of UIF can be sealed only one year after the case closes.7
UIF convictions are eventually sealable from your criminal record.
Frequently Asked Questions
What happens if I made an honest mistake on my unemployment claim?
Nevada recognizes that unemployment applications can be confusing and honest mistakes happen. If you lacked fraudulent intent and simply made an error (like miscalculating earnings or writing the wrong Social Security number), the charges may be dismissed. The prosecution must prove you acted intentionally to defraud the system.
How much money in fraudulent benefits makes this a felony instead of a misdemeanor?
Unemployment insurance fraud becomes a felony when you obtain $1,200 or more in fraudulent benefits. Less than $1,200 is a misdemeanor with up to six months in jail. Amounts of $1,200 or more result in felony charges with one to 20 years in prison, depending on the total amount involved.
Do I have to pay the money back even if the charges are dropped?
Yes, you must repay all fraudulently obtained benefits plus 15% even if criminal charges are dismissed. The state can also impose additional fines of 5% to 35% depending on the amount. This repayment is separate from any criminal penalties you may face.
How long will this stay on my criminal record?
If charges are dismissed, you can seal your record immediately. If convicted, the waiting period depends on the conviction level: misdemeanors can be sealed after one year, while felonies require a five-year waiting period after your case closes before you can apply for a record seal.
Additional Reading
For more in-depth information, refer to these scholarly articles:
- Unemployment Insurance Fraud and Optimal Monitoring – American Economic Journal.
- Unemployment without Fault: Disqualifications for Unemployment Insurance Benefits – Villanova Law Review.
- Unemployment Insurance in the United States: Analysis of Policy Issues – University of Pennsylvania Journal of Labor and Employment Law.
- Unemployment Insurance – Wayne Law Review.
- Lessons from the Unprecedented Fraud and Abuse of the Unemployment Benefits System during the Pandemic – American Enterprise Institute.
Legal References
- NRS 612.445 – Repayment of benefits received as result of false statement or failure to disclose material fact; penalty for unemployment insurance fraud; disqualification.
1. A person shall not make a false statement or representation, knowing it to be false, or knowingly fail to disclose a material fact in order to obtain or increase any benefit or other payment under this chapter, including, without limitation, by:
(a) Failing to properly report earnings;
(b) Filing a claim for benefits using the social security number, name or other personal identifying information of another person; or
(c) Filing a claim for or receiving benefits and failing to disclose, at the time he or she files the claim or receives the benefits, any compensation for a temporary total disability or a temporary partial disability or money for rehabilitative services pursuant to chapters 616A to 616D, inclusive, or 617 of NRS received by the person or for which a claim has been submitted pursuant to those chapters.
–> A person who violates the provisions of this subsection commits unemployment insurance fraud.
2. When the Administrator finds that a person has committed unemployment insurance fraud pursuant to subsection 1, the person shall repay to the Administrator for deposit in the Fund a sum equal to all of the benefits received by or paid to the person for each week with respect to which the false statement or representation was made or to which the person failed to disclose a material fact in addition to any interest, penalties and costs related to that sum. Except as otherwise provided in subsection 3 of NRS 612.480, the Administrator may make an initial determination finding that a person has committed unemployment insurance fraud pursuant to subsection 1 at any time within 4 years after the first day of the benefit year in which the person committed the unemployment insurance fraud.
3. Except as otherwise provided in this subsection and subsection 8, the person is disqualified from receiving unemployment compensation benefits under this chapter:
(a) For a period beginning with the week in which the Administrator issues a finding that the person has committed unemployment insurance fraud pursuant to subsection 1 and ending not more than 52 consecutive weeks after the week in which it is determined that a claim was filed in violation of subsection 1; or
(b) Until the sum described in subsection 2, in addition to any interest, penalties or costs related to that sum, is repaid to the Administrator,
–> whichever is longer. The Administrator shall fix the period of disqualification according to the circumstances in each case.
4. It is a violation of subsection 1 for a person to file a claim, or to cause or allow a claim to be filed on his or her behalf, if:
(a) The person is incarcerated in the state prison or any county or city jail or detention facility or other correctional facility in this State; and
(b) The claim does not expressly disclose his or her incarceration.
5. A person who obtains benefits of $1,200 or more in violation of subsection 1 shall be punished in the same manner as theft pursuant to subsection 2 of NRS 205.0835.
6. In addition to the repayment of benefits required pursuant to subsection 2, the Administrator:
(a) Shall impose a penalty equal to 15 percent of the total amount of benefits received by the person in violation of subsection 1. Money recovered by the Administrator pursuant to this paragraph must be deposited in the Unemployment Trust Fund in accordance with the provisions of NRS 612.590.
(b) May impose a penalty equal to not more than:
(1) If the amount of such benefits is greater than $25 but not greater than $1,000, 5 percent;
(2) If the amount of such benefits is greater than $1,000 but not greater than $2,500, 10 percent; or
(3) If the amount of such benefits is greater than $2,500, 35 percent,
–> of the total amount of benefits received by the person in violation of subsection 1 or any other provision of this chapter. Money recovered by the Administrator pursuant to this paragraph must be deposited in the Employment Security Fund in accordance with the provisions of NRS 612.615.
7. Except as otherwise provided in subsection 8, a person may not pay benefits as required pursuant to subsection 2 by using benefits which would otherwise be due and payable to the person if he or she was not disqualified.
8. The Administrator may waive the period of disqualification prescribed in subsection 3 for good cause shown or if the person adheres to a repayment schedule authorized by the Administrator that is designed to fully repay benefits received from an improper claim, in addition to any related interest, penalties and costs, within 18 months. If the Administrator waives the period of disqualification pursuant to this subsection, the person may repay benefits as required pursuant to subsection 2 by using any benefits which are due and payable to the person, except that benefits which are due and payable to the person may not be used to repay any related interest, penalties and costs.
9. The Administrator may recover any money required to be paid pursuant to this section in accordance with the provisions of NRS 612.365 and may collect interest on any such money in accordance with the provisions of NRS 612.620.
Nevada Employment Sec. Dep’t v. Nacheff (Nev. 1988) 757 P.2d 787; Bailey Schulz, “Unemployment fraud surfacing in Nevada amid record claims“, Las Vegas Review-Journal (April 14, 2020). - NRS 612.730.
- Perelman v. State (Nev. 1999) 981 P.2d 1199.
- About UI Benefits, Nevada Department of Employment, Training and Rehabilitation.
- NRS 612.445; See Tony Garcia, “Las Vegas man to serve at least 3 years in prison for unemployment insurance fraud,” News 3 NBC KSNV (September 13, 2017).
- See How unemployment benefits fraud has cost Nevada millions, KNPR State of Nevada (Dec. 22, 2011).
- NRS 179.245; NRS 179.255.