8.3.3 Multiple Acts of Fraud

If the W-2 agency discovers that more than one act of fraud occurs at the same time, i.e. on one EA application, then the W-2 agency must impose only one IPV. The agency can only impose subsequent IPV penalties after the individual has completed an IPV penalty period, reapplied for EA, and committed another fraudulent act. For example, after an individual has completed a 6-month penalty period for a first IPV, reapplies for EA, and commits another fraudulent act, the agency can consider imposing a second IPV penalty. The same is true for imposing a third IPV penalty; an individual has to serve the 12-month penalty period for the second IPV, reapply for EA, and commit another fraudulent act.

EXAMPLE 1: Lori applies for EA in February. She is determined eligible based on the information on her application. A month later, the agency discovers that Lori did not report her part-time employment and a savings account with a balance of $5000. The agency must impose only one IPV disqualification period even though Lori made two false statements on her EA application in February.

EXAMPLE 2: Seth commits his first EA IPV and is disqualified from EA for six months. During this IPV penalty period, Seth submits a new EA application and on the application, Seth reports that he is unemployed and currently has no income. However, the W-2 agency discovers that Seth has income from part-time employment. Although the agency believes that Seth intentionally withheld his income information on the EA application, the agency may not impose a second IPV because the 1st IPV penalty period has not ended. Seth would need to apply for EA again once the 1st IPV penalty period has expired, and the W-2 agency would need to determine that he had committed a fraudulent act on that new EA application in order to impose a 2nd IPV.