Thanks for responding. The penalty weeks are in addition to paying back the overpayment. They started back in 2004 and after 6 years if you haven't served them they are deleted as well as any money still owed. That is the statute of limitations and they sent me a notice in 2004 stating this. That is not in dispute. It's the fact that after 5 years, in 2009, I asked if they could waive the penalty weeks a year earlier since all the money had been paid back. They said no and I was told because I filed an appeal and asked for them to waive the penalty weeks they can now start the statute of limitations all over again. Basically, it was just for asking.
I wasn't aware that filing an appeal would extend the statute of limitations. It would have been up in December 2010. In order to serve penalty weeks I would have to be unemployed and I would not be paid unemployment for 6 months. They would keep the money and I could never go that long with no income. After 6 years you are supposed to be able to a get a fresh start.
I work for the federal government, I recently passed probation and my job is pretty secure. I will be permanent in a couple of years so I may have to save up for the furlough time. I just didn't understand how you could be penalized for just asking.

