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1310633 tn?1430224091

Welfare fraud charges filed against lottery winner

(CNN) -- A Michigan woman who won a million-dollar lottery but continued to receive welfare benefits is now charged with fraud, the attorney general said Tuesday.

Amanda Clayton, 25, collected thousands of dollars in state assistance for months after she won $1,000,000 in the 'Make Me Rich" game sponsored by the Michigan lottery, a statement from state officials said.

"It's simply common sense that million-dollar lottery winners forfeit their right to public assistance," said Attorney General Bill Schuette.

Clayton, a Lincoln Park resident, faces two felony counts of welfare fraud after being investigated by the Department of Human Services and the Office of Inspector General.

The inquiry revealed that not only did Clayton fail to report her lottery winnings and other employment earnings, as state law requires, she also "allegedly collected approximately $5,475 in food and medical benefits" she would have been ineligible for.

According to Michigan law, welfare recipients must report any changes in assets or income to the agency within 10 days.

"I thought that they would cut me off, but since they didn't, I thought, maybe it was OK because I'm not working," Clayton, 24, told CNN affiliate WDIV when it asked whether it was appropriate for her to receive the money.

Clayton bought a new house and car after winning the lottery in October 2011. According to state officials, she received public assistance from August 2010 through March 2012.

After taking a lump sum and paying taxes, Clayton said she ended up with just more than $500,000.

Asked if she had the right to the public assistance money, Clayton answered, "I kind of do. I have no income, and I have bills to pay. I have two houses."

New legislation -- which includes Senate Bill 711 and 712, and House Bill 5033 -- will block lottery winners from receiving government benefits.

Gov. Rick Snyder signed all the bills last Wednesday.

"That commitment to investigation and uncovering the truth, combined with the new law recently enacted by the legislature and signed by the governor, will make it easier to ensure that outrages involving instant millionaires on public assistance don't happen in the future," said Maura Corrigan, director of the state's Department of Human Services.

SOURCE: http://www.cnn.com/2012/04/17/justice/michigan-lottery-charges/index.html?npt=NP1
7 Responses
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377493 tn?1356502149
Greed is an ugly thing isn't it.  And people like that honestly don't care who they hurt...they just want what they want and to heck with others.  Another example of my day today was a women that came in needing help with damage deposit and first month's rent.  Asked for $1400.  I filled out her budget sheet with her, and between her and her partner, they make more money per week then I do!  Perfectly capable of paying their own way, but know how to work the system.  Needless to say I turned her down flat, but I couldn't believe the gall!  We are there to help people that really need it, not just because someone figures that we will be there to help whenever they want.  Ohhhh...I get sooo mad!  
Helpful - 0
163305 tn?1333668571
And people tell me greed isn't the problem!
Helpful - 0
377493 tn?1356502149
People that defraud things like the welfare system make me see about 5 shades of red.  Just today I was helping a women who desperately needs the help make her way through the system and jump through all the hoops she has to now.  Why? Because of all the cheats.  They are taking money and food out of the hands of people (including children) who truly need it.  Send her to jail.  

Can you tell I feel strongly about this issue? lol
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Avatar universal
Poor baby! She has not one but two houses to pay for! AWWW! I hope they make her pay back everything she ever got from day one and throw her in jail to boot. No one is that ignorant, Im not buying the fact that she didnt know.
Helpful - 0
649848 tn?1534633700
Well, playing the lottery isn't such an issue - many people buy a single ticket now and then and sometimes get lucky...... so far, that's not me!!

What I want to know is what's she doing with 2 houses...... the article says "After taking a lump sum and paying taxes, Clayton said she ended up with just more than $500,000."   $500,000 isn't that much today and it won't go far, if she isn't careful.  She bought a house and a new car...... bet neither was cheap because she thought she was rich!! .. That house is going to require maintenance, plus she'll have utility bills, etc.  Same with the car....

Is she some kind of dumbo or what?  "I thought that they would cut me off, but since they didn't, I thought, maybe it was OK because I'm not working,"   She didn't report to them, as required by the law; how would they know to cut her off?

She should have to pay back the public assistance from Oct 2011, when she won, to Mar 2012, including food stamps and medical benefits.

"Asked if she had the right to the public assistance money, Clayton answered, "I kind of do. I have no income, and I have bills to pay. I have two houses."     She has $500,000 - if she'd invest it wisely instead of spending it, she'd have income!!  

Don't we all have bills?  And we don't all get public assistance.... how about putting one of the houses up for sale?
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585414 tn?1288941302
   Food stamps have regulations that they can't be used for certain purposes and since both Public Assistance (welfare), Food Stamps and Medicaid are all on one benefits card this should not be so difficult. Strangely enough I was just speaking to someone I know about this because I see people who are on public benefits play the lotto all the time. Its unusual for a person to win but what you said makes sense.
Helpful - 0
1310633 tn?1430224091
Asked if she had the right to the public assistance money, Clayton answered, "I kind of do. I have no income, and I have bills to pay. I have two houses."

I think a welfare recipient should have to pay back all the public assistance they've "taken", if they win the lottery.

WTF was she doing playing the lottery anyway?!?

If you're on welfare & food-stamps, etc, I'd random a guess that your "hard earned" dollars are better spent on things besides the lottery... no?

Our tax dollars hard at work... yet again.
Helpful - 0
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