She did what she could to maximize her income and to prevent any reduction in benefits. She knew what she was doing and planned it. Regardless of her motive, the inescapable conclusion is that claimant willfully made a false statement of material fact for the purpose of obtaining benefits. The next question is what consequence follows that deception. It contends that the failure of the Department to penalize this claimant harshly would be an open invitation to fraud such as hers.
Defendant is correct in arguing that a penalty is due.
Forfeiture of benefits is mandatory, although the extent of forfeiture and imposition of a fine is discretionary. Claimant's financial distress justifies a less than maximum penalty for her dishonesty. In addition, she must repay the insurer for the balance of the overpayment due. Medical and permanency benefits must remain. However, if the insurer has not recouped the overpayment at the time permanency benefits become due, the insurer may deduct the amount due from the permanency award.