Lottery winner pleads no contest to felony welfare fraud

LANSING, MI--Michigan Attorney General Bill Schuette and Michigan Department of Human Services Director Maura D. Corrigan announced a woman charged with receiving food assistance payments after winning over half a million dollars from the Michigan Lottery has pled no contest. Amanda Clayton, 25, of Lincoln Park, pled no contest on June 28th, 2012 to one count of Welfare Fraud (Failure to Inform) $500 or More, a four year felony, before the Hon. Margie Braxton in Wayne County's 3rd Circuit Court. As part of the plea agreement, Ms. Clayton is required to pay $5,475.37 in restitution to the state. ''It's just common sense that lottery jackpot winners should not be collecting welfare,'' said Schuette. ''We will continue to work with Director Corrigan to eliminate waste, fraud and abuse. Anyone attempting to game the system and take advantage of Michigan taxpayers will be held accountable for their actions.'' ''We believe that justice has been done in this case,'' said Corrigan. ''The food benefits we administer are meant for those truly in need, not lottery millionaires. Now, for the first time, we are able to cross-reference with the Michigan Lottery to assure this does not happen in the future.'' Ms. Clayton's plea comes after the Attorney General's Criminal Division charged her with two counts of Welfare Fraud after receiving $5,475.37 in public assistance to which she was not entitled between August 1, 2011 and March 6, 2012. On September 12, 2011 Clayton won $514,427.06 in the ''Make me Rich game show from the Michigan Lottery. State Law requires that all recipients of assistance from DHS notify the department if their income situation changes due to employment or any other source. By not reporting the winnings as is required by law, Clayton continued to receive DHS payments from the Food Assistance Program, the Family Independence Program, and the Medical Assistance Program after she was no longer eligible. As part of the plea agreement, a second charge of Welfare Fraud for failing to report income from a new job has been dismissed. Clayton is scheduled to be sentenced before on the Hon. Margie Braxton on July 24, 2012 at 9:00am. Copyright © 2012 State of Michigan Published: Thu, Jul 5, 2012