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The court denied a debtor's motion to dismiss upon finding that the state had pled a legally sufficient claim for the nondischargeability of overpaid unemployment compensation, penalties, and collection fees. The debt, penalties, and collection fees stemmed from the debtor's fraudulent misrepresentation of his employment income. On review, the court rejected the debtor's contention that the portions of the debt owed for statutory penalties and collection fees were dischargeable as a matter of law. The court determined that the precedential case de la Cruz controls and dictates that penalties arising from overpaid unemployment compensation obtained by "false pretenses, a fraudulent representation, or actual fraud" are nondischargeable under Section 523(a)(2)(A) to the same extent as the restitutionary debt for overpaid unemployment compensation (In re: Christopher B. Wine, U.S. Bankr. (D. Colo.), No. 15-13483 TBM, September 27, 2016).
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