Section 38 — Employment Insurance Act: Penalty for claimants, etc.

The Commission may impose on a claimant, or any other person acting for a claimant, a penalty for each of the following acts or omissions if the Commission becomes aware of facts that in its opinion establish that the claimant or other person has in relation to a claim for benefits, made a representation that the claimant or other person knew was false or misleading; being required under this Act or the regulations to provide information, provided information or made a representation that the claimant or other person knew was false or misleading; knowingly failed to declare to the Commission all or some of the claimant’s earnings for a period determined under the regulations for which the claimant claimed benefits; made a claim or declaration that the claimant or other person knew was false or misleading because of the non-disclosure of facts; being the payee of a special warrant, knowingly negotiated or attempted to negotiate it for benefits to which the claimant was not entitled; knowingly failed to return a special warrant or the amount of the warrant or any excess amount, as required by section 44; imported or exported a document issued by the Commission, or had it imported or exported, for the purpose of defrauding or deceiving the Commission; or participated in, assented to or acquiesced in an act or omission mentioned in paragraphs (a) to (g). The Commission may set the amount of the penalty for each act or omission at not more than three times the claimant’s rate of weekly benefits; if the penalty is imposed under paragraph (1)(c), three times the amount of the deduction from the claimant’s benefits under subsection 19(3), and three times the benefits that would have been paid to the claimant for the period mentioned in that paragraph if the deduction had not been made under subsection 19(3) or the claimant had not been disentitled or disqualified from receiving benefits; or three times the maximum rate of weekly benefits in effect when the act or omission occurred, if no benefit period was established. For greater certainty, weeks of regular benefits that are repaid as a result of an act or omission mentioned in subsection (1) are deemed to be weeks of regular benefits paid for the purposes of the application of subsection 145(2).