Section 62(b)
FRAUD, Dependents, Availability, Attachment to labor market
CITE AS: Pardon v MESC, No. 82-219 979 AE, Wayne Circuit Court (November 8, 1984).
Appeal pending: No
Claimant: Larry A. Pardon
Employer: Imperial Cab
Docket No: B79 16525 77987
CIRCUIT COURT HOLDING: The claimant was not seeking work, was not available for work and wrongfully claimed his children as dependents for purposes of calculations. Consequently, he was subject to the fraud provision of the MES Act, Section 62(b).
FACTS: The claimant had owned a corporation which provided package transportation services. Ultimately the business went bankrupt. The assets of the claimant's corporation were sold to another corporation owned by his wife which also provided package delivery services. Thereafter, the claimant spent anywhere between 20 and 40 hours per week providing uncompensated services for his wife's corporation, and spent his free time at a health club.
During the period he was providing uncompensated services and spending a good deal of time at a health club the claimant was drawing unemployment benefits. For purposes of calculation of his benefit rate the claimant claimed his children as dependents. Although the claimant's four children were all under the age of 13, the wife's corporation paid them thousands of dollars per year for nominal services. Monies paid to the children were used for household purposes.
DECISION: The claimant was ineligible for benefits and subject to the penalty provision of MES Act Section 62(b) for intentional misrepresentation.
RATIONALE: Although he certified he was seeking work and available the claimant was not looking for a job but was providing uncompensated services to his wife and spending the bulk of his free time in athletic pursuits.
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