421.54c Embezzlement; penalties; applicability; disposition of amounts recovered; effective date of section.

789 words·~4 min read·/mi/chapter-421/421-54c

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 54c.

(1)An employing unit or an officer or agent of an employing unit, a claimant for unemployment benefits, an employee of the commission, or a third party that has knowingly or willfully appropriated or converted to his, her, or its own use money to be used for the payment of benefits under this act or money received as the payment of contribution liability under this act is guilty of embezzlement punishable as follows:

(a)If the amount obtained as a result of the knowing or willful appropriation or conversion of money is less than $500.00, the commission may recover the amount obtained as a result of the knowing or willful appropriation or conversion of money and may also recover damages equal to 2 times that amount.

(b)If the amount obtained as a result of the knowing or willful appropriation or conversion of money is $500.00 or more, the commission shall attempt to recover the amount obtained as a result of the knowing or willful appropriation or conversion of money and may also recover damages equal to 4 times that amount. The commission may refer the matter to the prosecuting attorney of the county in which the alleged violation occurred for prosecution. If the commission has not made its own determination under this subdivision, the penalty sought by the prosecutor shall include the amount described in this subdivision and shall also include 1 of the following applicable penalties if the amount obtained is $1,000.00 or more:

(i)If the amount obtained or withheld from payment as a result of the knowing or willful appropriation or conversion of money is $1,000.00 or more but less than $25,000.00, then 1 of the following:

(A)Imprisonment for not more than 1 year.

(B)The performance of community service of not more than 1 year but not to exceed 2,080 hours.

(C)A combination of

(A)and

(B)that does not exceed 1 year.

(ii)If the amount obtained or withheld from payment as a result of the knowing or willful appropriation or conversion of money is $25,000.00 or more but less than $100,000.00, then 1 of the following:

(A)Imprisonment for not more than 2 years.

(B)The performance of community service of not more than 2 years but not to exceed 4,160 hours.

(C)A combination of

(A)and

(B)that does not exceed 2 years.

(iii)If the amount obtained or withheld from payment as a result of the knowing or willful appropriation or conversion of money is $100,000.00 or more, then 1 of the following:

(A)Imprisonment for not more than 5 years.

(B)The performance of community service of not more than 5 years but not to exceed 10,400 hours.

(C)A combination of

(A)and

(B)that does not exceed 5 years.

(iv)If the knowing or willful appropriation or conversion of money made to obtain or withhold an amount from payment does not result in a loss to the commission, then a penalty shall be sought equal to 3 times the amount that would have been obtained by the knowing or willful appropriation or conversion of money, but not less than $1,000.00, and 1 of the following:

(A)Imprisonment for not more than 2 years.

(B)The performance of community service of not more than 2 years but not to exceed 4,160 hours.

(C)A combination of

(A)and

(B)that does not exceed 2 years.

(2)This section shall apply even if the amount obtained or withheld from payment has been reported or reported and paid by an individual involved in the embezzlement.

(3)This section applies to conduct that began before April 1, 1992 but that continued on or after April 1, 1992 and to conduct that began on or after April 1, 1992.

(4)The penalties provided in this section shall be in addition to any penalty provided in this act for a late filing.

(5)If a determination is made that an individual has violated this section, the individual is subject to the penalty provisions of this section and, where applicable, the requirements of section 62.

(6)The amount recovered by the commission pursuant to subsection (1)(a) or

(b)shall be credited first to the unemployment compensation fund and thereafter amounts recovered that are in excess of the amounts obtained as a result of the embezzlement shall be credited to the penalty and interest account of the contingent fund.

(7)This section shall take effect April 1, 1992.

History: Add. 1991, Act 8, Eff. Apr. 1, 1992 ;-- Am. 1993, Act 277, Imd. Eff. Dec. 28, 1993 ;-- Am. 2002, Act 192 , Imd. Eff. Apr. 26, 2002