Fraudulent CERB applications could land Canadians with $5K fine, jail time

4 months ago 35
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Canadians who made fraudulent claims for the coronavirus emergency benefit could face a fine of up to $5,000, a penalty double what they received in improper benefits and jail time.

Those who refuse to go back to work could also face financial penalties.

READ MORE: RCMP warn Canadians about CERB fraudsters and scams

That’s according to a draft version of legislation expected to be tabled by the federal government on Wednesday, and which aims to fill in some of the gaps in the existing rules.

Global News has obtained a copy of that draft bill, which was first reported on by the Globe and Mail.

While the government has said from the start of the program that those making fraudulent claims will face penalties, they have not said what those penalties could be.

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The draft legislation, however, lays that out for the first time.

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Making a false or misleading claim, failing to declare all income, knowingly receiving an income benefit that a person isn’t eligible for, non-disclosure of facts or facilitating omission of any facts are all listed as offences under that legislation.

Committing any of them will land a person a fine of up to $5,000 “plus an amount of not more than double the amount of the income support payment that was or would have been paid as a result of committing the offence.”

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They could also get hit with the fine of up to $5,000 plus up to six months in jail.

READ MORE: CEWS vs. CERB — How the two benefits fit together and who may have to return payments

As well, continuing to collect the benefit while refusing to work will also result in penalties.

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The legislation says individuals in that category include those who “fail to return to work when it is reasonable to do so and the employer makes a request for their return; fail to resume self-employment when it is reasonable to do so; or decline a reasonable job offer when they are able to work.”

Doing so could result in a retroactive fine of up to triple the amount improperly claimed once the individual was able to return to work.

With files from Global’s Bryan Mullan.

More to come.

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