A Las Vegas woman was arrested Friday following an investigation by the Nevada State Police Investigation Division into a large-scale fraud scheme. The woman allegedly stole personal identifying information and trafficked Supplemental Nutrition Assistance Program (SNAP) benefits.
Initially, caseworkers with the Nevada Division of Social Services (DSS) flagged several suspicious cases for review. As the investigation expanded to include the Nevada Attorney General’s Office, officials identified that the Nevada State Police were also investigating the same suspicious fraudulent activities.
In June 2025, officers with the Nevada State Police Parole and Probation Division conducted a home contact on probationer Mychelle Lay, who was under supervision for possession of a controlled substance and obtaining and using the Personal Identifying Information of another. Evidence related to fraudulent activity was discovered during the contact.
The investigation by the Nevada State Police revealed that Lay established a fictitious business in the Las Vegas area that was approved through the federal process to accept SNAP EBT transactions in December 2024 and began operating in January 2025.
The business was used to facilitate fraudulent SNAP benefit transactions.
Financial records indicate the business processed hundreds of thousands of dollars in transactions between January 2025 and September 2025, connected to the fraudulent activity. Evidence of numerous individual profiles connected to the fraudulent activity was discovered. The exact number is still being determined.
The investigation also identified potential fraud connected to Medicaid enrollment. State officials are working to determine a more precise estimate.
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“While it is concerning to see this level of criminal sophistication, I applaud our state agencies for identifying this potential fraud, launching an investigation, and coordinating with law enforcement and the affected federal agencies,” Gov. Joe Lombardo said in a statement. “We do not tolerate any level of theft of taxpayer dollars and will continue to work with law enforcement as the investigation proceeds.”
The Nevada DSS, which administers SNAP benefits and conducts the Medicaid eligibility process in Nevada, is coordinating with state and federal agencies in the ongoing investigation involving allegations of identity theft and the trafficking of SNAP and Medicaid benefits. Internal reviews conducted by DSS indicate the applications were processed in accordance with federal guidelines.
“One of our caseworkers first identified suspicious activity after noticing multiple benefit applications tied to the same address,” said Robert Thompson, Nevada DSS Administrator. “Most of the applications were submitted online and were processed in accordance with federal eligibility guidelines. As fraud tactics evolve, DSS continues to evaluate additional technology tools to strengthen fraud detection and protect the integrity of these programs.”
Lay was booked into the Clark County Jail with multiple charges, including:
• 1 count NRS 205.0832 - Theft over 100k
• 1 count NRS 422A.700 - Fraudulent Acts — Public Assistance
• 1 count NRS 205.377 - Multiple Fraudulent Transactions through an Enterprise or Occupation
• 11 counts NRS 205.463 - Obtaining/Using ID of Another
“Fraud of this nature is egregious and diverts critical resources from those who need them the most, and puts responsible recipients of public benefits, like Medicaid and SNAP, at risk,” said Ann Jensen, Nevada Medicaid Administrator. “This case of fraud highlights the important need for further modernization of Nevada’s systems and technologies. Many of these efforts are already underway at the Nevada Health Authority in partnership with the Nevada Department of Human Services.”
The Nevada State Police are coordinating with the Nevada Attorney General’s Office regarding the case.
Agencies assisting in this investigation in addition to the Nevada Division of Social Services include the Office of the Inspector General, U.S. Department of Health and Human Services, the Office of the Inspector General, Social Security Administration, the U.S. Secret Service and the U.S. Department of Agriculture, Office of Inspector General.
The investigation remains ongoing. Additional information will be provided as it becomes available.
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