Carey Charles received unemployment benefits while working part time for the YMCA, and a Department of Labor audit later concluded that he had underreported earnings for several weeks. The Department assessed more than $7,000 in overpayments and fraud penalties, and the administrative hearing officer and Board of Review upheld the fraud determination. The superior court affirmed. The Court of Appeals of Georgia reversed and remanded. The Department’s evidence that Charles knowingly misrepresented his income to obtain higher benefits was circumstantial: its witness could not prove that Charles received the handbook explaining that gross earnings had to be reported, and the online certification process did not establish that he received that instruction. Charles testified that he generally reported the net deposits credited to his account and did not knowingly seek benefits beyond his entitlement. Even assuming the Department’s evidence supported an inference of knowledge and intent, it did not make Charles’s contrary explanation less probable. His lack of diligence in tracking earnings and benefit deposits could support an actual overpayment, but it was not enough to impose fraud penalties under OCGA § 34-8-255, which requires a knowing false statement or omission made to obtain or increase benefits. The court directed the Department to determine any actual overpayment under OCGA § 34-8-254 without fraud penalties or consequences. Charles’s separate hearsay challenge and motion to strike the supplemental record were not reached.