LAS VEGAS (KTNV) — The Governor's Office has announced the arrest of Mychelle Lay, a Las Vegas woman allegedly involved in the "theft of personal identifying information and trafficking of... SNAP benefits."
Multiple cases were marked as suspicious by caseworkers with the Nevada Division of Social Services (DSS), and brought to the attention of the Nevada Attorney General's Office. It was at this time, officials said, that they learned Nevada State Police (NSP) were also tracking these activities.
"One of our caseworkers first identified suspicious activity after noticing multiple benefit applications tied to the same address. 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." — Robert Thompson, Nevada DSS administrator
In June, 2025, NSP officers with the Parole and Probation Division held a home contact on Lay, a probationer. They discovered fraudulent activity evidence at that time.
During their investigation, NSP learned that Lay had set up a fake business in December, 2024, that was approved for SNAP/EBT transactions and began to operate in January, 2025.
Hundreds of thousands of dollars were processed through this scheme between January and September, 2025, according to financial records. The precise number of individual profiles in connection with the "business" is still unknown.
"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. We do not tolerate any level of theft of taxpayer dollars and will continue to work with law enforcement as the investigation proceeds." — Governor Joe Lombardo
In addition to SNAP fraud, NSP's investigation revealed "a potential fraud connected to Medicaid enrollment." Officials are working to learn more about this activity.
The Nevada DSS (administrators of SNAP benefits and processors of Medicaid eligibility) shared that they are working closely with law enforcement's investigation. The Office of the Inspector General and their Social Security Administration department, the U.S. Department of Health and Human Services, U.S. Secret Service, and the U.S. Department of Agriculture, Office of Inspector General are also assisting in this case.
"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. 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." — Ann Jensen, Nevada Medicaid administrator
According to the report, Lay was booked into the Clark County Jail with the following charges:
- 1 count of theft over $100,000
- 1 count of fraudulent acts — public assistance
- 1 count of multiple fraudulent transactions through an enterprise or occupation
- 11 counts of obtaining or using the ID of another
During the time NSP conducted their home contact, Lay was being supervised for possession of a controlled substance and for obtaining and using the personal identifying information of another.
This investigation is still ongoing. If you believe you might be a victim of identity theft, contact the Division of Social Services by visiting a local office, email welfare@dds.nv.gov, or call 702-486-1646 (Southern Nevada) or 775-684-7200 (Northern Nevada).
