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Can an employer report fraud when an awards letter has been received

I worked for a small businesss (in california)that is owned by a family member.

I recently applied for unemployment listing them as my last and only employer.
I received an awards letter and have been collecting benefits for several weeks.

When my employer/family member learned i was getting unemployment checks, world war 3 broke out within my family.

They refuse to believe and do not understand how i could be eligible to collect unemployment benefits when i only worked there a few months, 2 years ago. ( i last worked for them in Oct 2008)
Because they dont understand or believe it, they (claim to have)reported it as fraud.

They are also claiming that they just had to send in a bunch of money because I am getting these unemployment checks and they want me to pay them back for it... whatever "it" is..

I guess my question to you is, how can there be any fraud i did work there??

Can i stop getting checks even tho i got an awards letter ??

As far as I know, in California the award letter is just the monetary determination .. benefits usually aren't received until the non-monetary determination is issued. What did that say? They could have appealed.

I too, am a little confused though .. when did you file?

Were they not paying unemployment tax? It happens, but a division of the department investigates employers who don't pay taxes on employee wages, which could account for WWIII Additionally, there are some exceptions which exempt employers from paying if the employee is a "close" family member, in some states.

Pay'em back? Report it to the department .. that's a no-no. There is a proper red tape channel for employees and employers alike. Sounds to me like whoever is just compounding their tax troubles.

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