This week, a Detroit man was arraigned for allegedly stealing the identities of 12 people and using them to take over $400,000 of unemployment benefits and rental assistance.
Stanley Butts, 58, of Detroit, was arraigned before Magistrate Judge Laura A. Echartea of the 36th District Court in Detroit for allegedly stealing multiple identities to fraudulently obtain more than $400,000 in unemployment benefits and rental assistance, announced Michigan Attorney General Dana Nessel.
Butts is charged with one count of false pretenses - $100,000 or more, a 20-year felony; three counts of false pretenses - $50,000 or more but less than $100,000, a 15-year felony; two counts of false pretenses - $20,000 or more but less than $50,000, a 15-year felony; twelve counts of identity theft, a 5-year felony; and two counts of using a computer to commit a crime, one a 20-year felony and one a 10-year felony.
“Assistance programs are intended to help people during difficult times, and not only did this individual allegedly siphon off hundreds of thousands from struggling Michiganders but did so by committing identity theft that harmed innocent victims,” Nessel said in a statement. “I would like to thank UIA and MSHDA for referring this matter to my office. We remain committed to pursuing those who commit fraud and abuse taxpayer funds.”
Butts allegedly used the personal information of at least 12 different individuals to fraudulently obtain more than $300,000 in fraudulent Unemployment Insurance Agency (UIA) benefits and more than $100,000 in COVID Emergency Rental Assistance payments from the Michigan State Housing Development Authority (MSHDA).
“UIA is committed to administering the state’s unemployment insurance program with integrity while providing fast, fair, and fraud-free service,” said Jason Palmer, UIA Director. “We work closely with our state partners and law enforcement to aggressively investigate any threat to the Unemployment Insurance Trust Fund so Michigan’s residents can be confident the benefits they are entitled to receive will be there when they need help after losing a job.”
Yesterday, Stanley Butts, 58, of Detroit, was arraigned for allegedly stealing multiple identities to fraudulently obtain more than $400,000 in unemployment benefits and rental assistance, announced @miattygen Dana Nessel. Read more at https://t.co/0zxhN8l3Wq pic.twitter.com/3ovZX8bcCw
— Michigan Attorney General Dana Nessel (@MIAttyGen) February 5, 2026
This matter was referred to the Department of Attorney General by UIA and MSHDA. In 2024, MSHDA and the Department of Attorney General entered into a Memorandum of Understanding to investigate and if appropriate prosecute cases of large-scale fraud.
“Identity theft and fraud undermine the integrity of critical support systems that families rely on in times of need,” said Amy Hovey, CEO and Executive Director of the Michigan State Housing Development Authority. “MSHDA administered the COVID Emergency Rental Assistance program during the pandemic to help keep Michiganders safely housed, and we appreciate Attorney General Nessel’s continued work to hold accountable anyone who attempted to exploit those resources for personal gain.”
Butts was given a $200,000/10 percent bond and is scheduled to appear before the 36th District Court for a Probable Cause Conference on February 12, 2026.
A preliminary examination is scheduled for February 19, 2026.
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