(1) A "fraudulent benefit overpayment" is a benefit overpayment created as the result of a disqualification, ineligibility, or reduction in benefit entitlement imposed on the basis of information not previously known by the department due to the claimant's false statement or representation or failure to disclose a material fact in order to obtain or increase benefits.

(2) The penalty referred to in 39-51-3201 (1) (b) , MCA, for the first offense is 33% of the fraudulent benefit overpayment. For each subsequent offense within five years of the most recent previous fraudulent benefit overpayment, the penalty referred to in 39-51-3201 , MCA, is 100% of the current fraudulent benefit overpayment.  The amount required to be repaid to the department will be an amount equal to the fraudulent benefit overpayment plus the penalty.