5 U.S.C. § 8507 — False statements and misrepresentations

(a) If a state agency, the Secretary of Labor, or a court finds that someone (1) knowingly made a false statement, caused someone else to make one, knowingly failed to disclose an important fact, or caused someone else to fail to disclose one, and (2) as a result got unemployment compensation they weren't entitled to, that person must repay the amount to the state agency or the Secretary. Instead of demanding repayment all at once, the state agency or Secretary may instead take the money back gradually, by deducting it from the person's future compensation payments over the two years after the finding is made. A State agency or the Secretary of Labor may make the finding only after the person has had an opportunity for a fair hearing. The finding is subject to any further review that may be appropriate under sections 8502(d) and 8503(c) of this title. A court's finding is not covered by this fair-hearing requirement.

(b) Any amount repaid under subsection (a) goes back to where it came from: if it was repaid to a state agency, it's deposited into the fund that originally paid it out; if it was repaid to the Secretary, it goes back to the U.S. Treasury and is credited to the appropriation, fund, or account that made the original payment.