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Fraud Charges For Lotto Winner

April 18, 2012 by staff 

Fraud Charges For Lotto Winner, 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 million 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.

Mega Millions mystery winner about to emerge, 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.

State stops welfare pay to lotto winner
“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.

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