The mayor of a small northeastern Louisiana city has been arrested and charged in an alleged Medicaid fraud scheme involving tens of thousands of dollars in benefits, state officials said.
Louisiana Attorney General Liz Murrill announced that Winnsboro Mayor Alice Wallace, 50, was taken into custody April 21 and booked into the East Baton Rouge Parish Prison, where she remained without bond as of Tuesday.
Wallace faces six counts of government benefits fraud in what Murrill described as a scheme to illegally obtain approximately $75,000 in Medicaid benefits between 2021 and 2026, according to the attorney general's office.
"It doesn't matter who you are — if you defraud the hardworking taxpayers of Louisiana, you're going to jail," Murrill said in a statement.
The investigation was conducted by special agents with the Louisiana Bureau of Investigation after the Louisiana Department of Health referred allegations of potential fraud to the attorney general's office, officials said.
Authorities allege Wallace fraudulently received Medicaid benefits for herself and a dependent by failing to disclose key financial and personal information required to determine eligibility.
Investigators said she did not report changes in household income, failed to disclose her marital status, and misrepresented whether employer-provided health insurance was available, all of which are factors used to determine Medicaid qualification.
According to investigators, Wallace continued receiving benefits over a five-year period despite earning income that would have made her ineligible for the government program.
The alleged misconduct spans two periods, including before and after Wallace took office as mayor in 2022, when she began earning a salary as an elected official while still receiving Medicaid benefits, authorities said.
Wallace has served as mayor of Winnsboro, a city of roughly 5,000 residents and the seat of Franklin Parish, since July 2022. Officials said she did not report required updates regarding her employment, income, or access to health coverage during her time in office.
Agents obtained an arrest warrant through the 19th Judicial District Court, and Wallace surrendered to authorities before being booked, according to the attorney general's office. It was not immediately clear whether Wallace has retained legal representation.
Medicaid fraud cases have been a focus of enforcement efforts in Louisiana and nationwide, with authorities warning that schemes involving false eligibility claims or undisclosed income undermine programs designed to assist low-income and vulnerable residents.
Under Louisiana law, government benefits fraud can carry significant penalties, including fines and prison time, depending on the amount of money involved and the number of counts filed.
Authorities have not said when Wallace is expected to appear in court.
When contacted for comment, Wallace told local news outlet KNOE that an attorney advised her not to comment on the case. In a since-deleted Facebook post, Wallace wrote on Tuesday that she "will be vindicated," adding, "The devil is trying to embarrass and discredit leadership to possess power again through those who know zero … just look who's backing them!"
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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