Page updated on: Friday April 23, 2010

Benefit Fraud

Example:

Paul has been on the unemployment benefit for 3 years. During that time he worked “under the table” for his brother-in-law for about 9 months. He falls out with another family member who reports the fact he was working to Work and Income. He is investigated by the Ministry and eventually summonsed to appear in court for failing to notify WINZ of his earnings. WINZ allege that he wrongfully claimed $5,800 over the months he was working.

 

Offence:
Section 127 Social Security Act 1964 makes it an offence for a person to make any statement knowing it to be false, or to wilfully omit to do or say anything for the purpose of misleading WINZ as to their eligibility for a welfare benefit.

Penalty:
The maximum penalty is 12 months imprisonment or a fine not exceeding $5000 or both.

Likely sentence:

If this is the first time Paul has offended he is likely to be convicted and receive 60 –100 hours community work.

Special notes:

Because this is a WINZ matter, the case will be prosecuted by the Ministry’s prosecutor and not the Police. Because of this Police diversion is not available to first time offenders.