In Matter of Gazzara v. Commissioner of Labor , Nancy Gazzara applied for, and secured, unemployment benefits after she lost her job as an administrative assistant.
The New York State Department of Labor (DOL) later stopped the pay-outs, sought to recover payments made, and, assessed a penalty based on Gazzara's "willful" misrepresentation of her status. (Apparently, the woman hadn't disclosed she had started a new business.)
Since she "stood to benefit" from her activities -- which consisted of creating a website, printing business cards and actively soliciting clients for a new business -- the AD3 was of the view Gazzara wasn't "unemployed." And, because the DOL had given her a booklet which advised her of an obligation to report such activities, the AD3 thought Gazzara "willfully misrepresented her status, even though such misrepresentation may have been unintentional."
Good golly, Gazzara got guzzled!
For a copy of the Appellate Division's decision, please use this link: Matter of Gazzara v. Commissioner of Labor