$1M Lottery-Winner’s Food Stamps Yanked After Story Goes Viral
- Posted on March 8, 2012 at 9:56am by
Jonathon M. Seidl
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Yesterday, we brought you the story of Amanda Clayton, the 24-year-old Michigander who won $1 million by playing the lottery last fall but was still found to be getting and using food stamps. She thinks there’s nothing wrong with it. But many of you did. And apparently, the state of Michigan has, too: it’s now cut Clayton off from getting the free money.
Clayton, who took a lump-sum pay-out and received just over $500,000 after taxes, was still getting food stamps when local station WDIV-TV caught up with her this week and confronted her about it. When asked if she thought it was okay that she was still getting the free money despite her huge winnings, she said yes.
“I thought that they would cut me off, but since they didn’t, I thought maybe it was okay because I’m not working,” Clayton, who gets $200 a month from the state, said when asked if she thought it was right. When asked if she thinks she has a “right” to the food stamp money, she said yes. “I mean, I kind of do.”
“I feel that it’s okay because I mean, I have no income and I have bills to pay,” she added. “I have two houses.”
But the welfare well has now run dry — at least for Clayton.
The Detroit News explains:
Late Wednesday, the state Department of Human Services said Clayton is now no longer getting food stamps after department officials took her off the program.
[...]
Amanda Clayton may have broken the law if she continued to accept food stamps after her income and assets exceeded the legal limit for assistance.
To qualify for food stamps, recipients must have income below a threshold. The state last year put in place asset tests for those on welfare and food stamps.
“The person in question hasn’t been eligible for a long time,” said DHS spokesman Dave Akerly.
A statement issued Wednesday evening from department Director Maura Corrigan said Clayton is “now no longer receiving benefits,” but it was unclear when the action was taken.
“DHS relies on clients being forthcoming about their actual financial status,” she said. “If they are not, and continue to accept benefits, they may face criminal investigation and be required to pay back those benefits.”
But the story doesn’t end there. On Wednesday, we also introduced you to Rep. Dale Zorn, the state Rep. who’s fighting for a bill that would require welfare recipients to be cross-referenced with lottery winners over $1,000. Well guess what: it turns out he is a distant relative of Clayton’s:
Zorn, 58, was unaware of the family connection until The Detroit News asked about it Wednesday and doesn’t recall meeting Lane. But Zorn said he checked with a cousin and family historian who verified Lane is “indeed a long distance cousin,” five or six times removed.
“I‘m not saying it’s the right thing to do,” Euline Clayton, Amanda’s mother, told the Detroit news. “But it‘s nobody’s business if she’s not breaking the law.”
But she’s not garnering much sympathy.
“At a time when so many out-of-work Michigan families are in real need of assistance, it’s outrageous for people to cheat and defraud the system like this,” Michigan U.S. Sen. Debbie Stabenow, who also wants a similar federal law, added.
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Comments (151)
GERATMO
Posted on March 8, 2012 at 11:45amI bet she has no Idea that we are trillions of dollars in debt and she probably doesnt even know where that money comes from. From her reaction to being caught, she really does think that its ok to take free money as long as the checks keep coming regardless of her financial situation. This is not an isolated incident either, I bet %75 of all food stamp recipients dont really need them. This program is in place for people who are truely hurting, not people who have two houses and a nice car.
Report Post »KeithOlberdink
Posted on March 8, 2012 at 12:22pmWell it comes from obama’s stash, of course. You should know that.
Report Post »MIBUGNU2
Posted on March 8, 2012 at 12:35pmJust another example of Liberals not wanting to give up their
Report Post »FREE STUFF..”I don’t WORK and I have TWO HOUSES”…
must be nice !! Looks like we are paying for her Soda Pop
and Chip’s… GOOD GRIEF !!!
diverdown
Posted on March 8, 2012 at 12:51pmI seriously doubt this parasite is aware of anything farther than six inches in front of her face. Or the length of her nose, whichever comes first.
Report Post »The Jewish Avenger
Posted on March 8, 2012 at 12:55pmwhoa whoa whoa… she JUST bought two houses? Or she HAS two houses?
1,000,000.00
Federal taxes for winning lottery
State taxes for winning lottery
Takes a lump sum of just over 500k.
Hmmmm….
“Prizes over $5,000: For any Michigan Lottery prize over $5,000, the Lottery is generally required to withhold an estimated 25 percent in federal tax and 4.35 percent in state tax.” (Michigan State Lottery)
Minimum of 29.35% of a mil? simple enough… 706,500 remaining… so how come only “just over 500,000?
My guess would be:
“Assignment of lottery winnings payable in installments for lump sum
Several companies are in the business of acquiring lottery winnings that are payable in installments from prizewinners in exchange for a discounted lump sum. If you assign your right to future lottery installments to one of these companies for a lump sum in an arm’s length transaction, the assignment is treated as a sale. You would have to include the lump sum in income in the year of the sale.”
And at least we know:
“You don’t get any capital gains rate break for lottery winnings, nor is there any income averaging to help lower your tax bill.” (LOL)
So, if she did buy two houses, and lives in Michigan, wouldn’t it be safe to assume that she bought them in Detroit? 8D
Report Post »db321
Posted on March 8, 2012 at 1:08pmShe will go through her money in 90 days and she will be back on Food Stamps just in time to get in the Obama Voting line along with the Women getting free Birth Control.
Report Post »Baddoggy
Posted on March 8, 2012 at 1:42pmWhy no jail time for theft?
WHY NO JAIL TIME!?????
Report Post »Marci
Posted on March 8, 2012 at 2:25pmIt‘s nobody’s business if she isn’t breaking the law…..
Well, she is Mommy. And she also is too stupid to know not to do long winded interviews either. However, she is just the tip of the iceberg. Our system is broken because of the overwhelming amount of people on it (by design) and MANY, many of them do not truly qualify for it.
Report Post »TexasHunter
Posted on March 8, 2012 at 3:17pmThis is another reason why ALL people on welfare need to be drug tested on a monthly basis.. If you fail you do not receive. Simple as that..
Report Post »antiencenom
Posted on March 8, 2012 at 4:02pmba ddoggy
Calm down,you scare me when you come unhinged
NOT !!!!
Report Post »beachj11
Posted on March 8, 2012 at 4:06pmTexashunter: I absolutely agree! Although I would ultimately like to see all welfare programs done away with, I am 100% in favor of people having to pass a drug test to pick up their welfare check. After all, I had to pass one to make it for them!
Report Post »VRW Conspirator
Posted on March 8, 2012 at 4:12pm@Jewish
Report Post »typically with lottery winnings…if you pick the lump sum pay out, you don’t get the full value of the prize. a lottery will pay out the annual installment by depositing a sum of money into a type of trust fund that yields a certain percentage of interest. that percentage of interest is equal to the annual installment amount. most lottery winnings are paid out over 25-30 years, depending on the state. so, if she won $1million over 30 years, she would be paid only $33,333.33 a year and then have to pay taxes on that yearly income, which would violate her welfare claims and put her over the limit to receive benefits, I am sure….she is a single after all…usually the limit is $40,000 or so for a family of 4…
so at a modest 5% return, MI would have only had to deposit $666,666.66 in an account for her.
if you work backwards, at just over $500,000 for a payout, they actually put in about $707,000, so they were making just under 5% annual interest in the account…
the REAL scam, is that after the 30 years is up…all the installments paid, that state gets to RECLAIM the installment account and the money goes into the General Fund for the state, not the Lottery Fund which is financed with ticket sales.
So the state didn’t care she was on welfare because they are running a Ponzi Scheme, disguised as a lottery, and really don’t want ANYBODY investigating how it works…
KickinBack
Posted on March 8, 2012 at 4:50pmGiver her about 5 years and that money will be gone and she’ll be back on the food stamps again.
Report Post »MYHEROISRON
Posted on March 9, 2012 at 6:46amYeah, right! Third generation welfare turd if I ever saw one!
Report Post »ambrosia
Posted on March 9, 2012 at 3:09pmHey, Olive Oyl-
Get off your azz
Report Post »& the taxpayer’s back
and go get a job working for Popeye the Sailor Man…..Toot, TOOT !
cassandra
Posted on March 8, 2012 at 11:43amthey need to go back to the FOOD BANK system, run by the VFW or churches if you need food you go to food banks and they will give you the milk,flour,rice,meat,cereal,peanut butter, can vegetables etc you need to feed youself and children thats it, if you can get to a store you can get to a food bank that would end the fraud but the progressives want to make it easy to overload the system how very Francis Fox Piven of them DRAIN THE SYSTEM
Report Post »snoopy
Posted on March 8, 2012 at 1:50pmSpot on Cassandra! Another example of what we are producing in our Government schools!
Report Post »smithclar3nc3
Posted on March 8, 2012 at 3:16pmRemember when people were ashamed to take welfare even those that actually needed it. When I was young after the divorce we were on welfare for about a month my dad worked a second full time job to get off of it he was so ashamed of it. He always said a heathy man that can’t take of his family is no man at all. We never used any welfare of any type again. Today these leeches celebrate and demand more what a sick a55 soulless class these democrats have created.
Report Post »DSTSS2010
Posted on March 8, 2012 at 11:41amSomeone I know applied for food stamps, their unemployment had run out and they were unable to find work. They said theysh were not eligible because they owned a house. How could thiis POS collect anything owning TWO houses?
Report Post »MidwestMomof3
Posted on March 8, 2012 at 2:10pmYou’re allowed a home that you live in, one car, and assets (other cars, savings/checking [including in a minors name] accounts, boats, rental properties, etc.) can not total more than $5,000. You can not be a full-time college student. I’m assuming that without working they were well under the income limit so it would be one of those other things that would disqualify them. Sucks big-time to be jumping thru hoops when others seem to be able to just waltz right in and walk out with them!
Report Post »TheCoffinMaker
Posted on March 8, 2012 at 11:36amYou’re going to love this comment.
I win $1,000,000.00
The government takes $500,000.00
Who’s the welfare recipient?
Report Post »Bobj_1960
Posted on March 8, 2012 at 1:01pmThe government did not take $500,000
Report Post »The lotto win for $1,000,000 is if you take the 20 year annuity option
She took the lump sum payout which is $500,000
Taxes will be about 30% or $150,000 leaving $350,000 for her to buy that house new car and she shuold be able to afford food on the left over.
LOTO
Posted on March 8, 2012 at 1:27pmI’ll have Koolaid please.
Report Post »smithclar3nc3
Posted on March 8, 2012 at 3:22pmbobj,
Report Post »she won 1,000,000 the lumps some was 700,000 after taxes she had just over 500,000. It really doesn’t matter she would be just as wrong to take food stamps after winning 350,000 as she is winning over 500,000.
jdare
Posted on March 8, 2012 at 3:27pmThere are so many things wrong here, where do I begin? First of all, the state is guilty of fraud. The lottery is NOT 1 million. It’s only 1 million if they get to keep it and pay it out in monthly payments in which case the difference between the lump sum and the total amount advertised is interest and is earned from the use of that money. If a private company tried that scam, they would probably be arrested and closed down, but not the government. TEA! Fair Tax!
Report Post »mshg714
Posted on March 8, 2012 at 4:36pmShe won a $1,000,000 annuity. Lump sum payout of $700,000. After taxes she netted roughly $520,000. Then she bought a new house and what looks like a pos $5,000 cavalier. She was wrong and she knows it. 24 years old? Othe than being dumb as a box of rocks why doesn’t she have a JOB? Oh Yeah, lazy entitlement attidude. I refer to this as the “Oprahfication” of our country. “It’s not fair. It’s not my fault. Why do I have to work?…”
Report Post »gz22ll
Posted on March 8, 2012 at 11:17amI would like to say this is a generational thing but it is not. This the 2nd story out of Michigan with a lottery winner using Food Stamps within the last 16 months. The other one was a winner in his 60′s. Check out the story on Leroy Fick of Bay County, Mich. (http://www.foxnews.com/us/2011/05/18/michigan-man-receives-food-stamps-winning-2-million-jackpot/). In that story the winner actually contacted the state and they said “you can go ahead and keep it if you want to”.
Read more: http://www.foxnews.com/us/2011/05/18/michigan-man-receives-food-stamps-winning-2-million-jackpot/#ixzz1oXhwGF00”
The one thing no one ever raises is why is someone on food stamps in the first place buying lottery tickets?
Report Post »JimmyP
Posted on March 8, 2012 at 12:30pmThe Lottery is a reverse progressing tax system. The less you make, the more you play. The more you play, the more you lose, the more you think you ARE DUE to win. ETC., ETC., ETC.
When organized crime ran the numbers rackets in Detroit, they would periodically SELECT an elderly woman who had just suffered some misfortune to WIN, thereby showing some compassion.
If we really wanted to show compassion for the poor, we would close the casino’s in Detroit, turn them into homeless shelters, end state-sponsored gambling (illegal to everyopne else) racket, and, and, and. Fortunately, I am not in charge!
Remember – according to the best staticians – YOUR CHNACES OF WINNING THE LOTTO INCREASE slightly IF YOU BUY A TICKET!
Report Post »abbygirl1994
Posted on March 8, 2012 at 11:17amNow make her pay it back… from the time she won till now… also,, she has a pretty new car.. doesn’t Welfare give foodstamps by the kind of car you have.. back in the day, seems like they only allowed you to have a clunker??? They figured if you could have a fancy car you could buy groceries.. or at the least sale the car to feed yourself!
Report Post »aquablue
Posted on March 8, 2012 at 11:28amcash for clunkers took away lower priced cars! welfare doesn’t calculate the value of the car you drive. you could drive.
Report Post »snoopy
Posted on March 8, 2012 at 1:56pmYou are right Abbygirl, MAKE HER PAY BACK EVERY PENNY SHE TOOK AFTER WINNING THE LOTTERY. It‘s no surprise that her mother tells us it’s none of our business if she is not breaking the law!
Report Post »Morals anyone?
Mathchopper
Posted on March 8, 2012 at 11:01amThere goes a Democrat vote down the tubes.
Report Post »AvengerK
Posted on March 8, 2012 at 11:20amI’m taking bets….that $500K will be blown by the end of the year. Not on bills and living costs but on extravagances and friviloties.
Report Post »cassandra
Posted on March 8, 2012 at 10:57amone fraud taken off food stamps millon more to go ,there was another guy few months back that did the same thing in Detroit
Report Post »nolefan2
Posted on March 8, 2012 at 10:53amI was outraged when I saw this on TV. Thank God, the state of Michigan took this action. This woman and her mother obviously think the government’s job is to take care of them from cradle to grave. I‘m sorry she doesn’t have a job, but she didn’t indicate that she is looking. I doubt it. If she has 2 houses, sell or rent one. Use the money for education to help get a job. Our welfare system is rampant with fraud. It is no wonder the people who REALLY need help have trouble getting it.
Report Post »OL_Glory
Posted on March 8, 2012 at 10:49amCan you say Morality? Morality was on the decline before Hussein Obama and he promotes immorality!! So naturally we now have a society of selfish ingrates who think they are owed something even when she brings home twice as much as I have in my 401 that I have worked hard to accomplish over 20 years of savings and paying $24,000 a year in State and Federal taxes for people like her. un-friggin real. She is a real class act.
Report Post »REPUB1
Posted on March 8, 2012 at 10:46am“To qualify for food stamps, recipients must have income below a threshold”
and what is it ??? $100,000.00 per household of maybe $80,000.00 it should be set at $15,000.00 per household then it wouldnt cost tax payers sooooooooooooooooooooo much Money…
Report Post »Vickie Dhaene
Posted on March 8, 2012 at 1:39pmI am a disabled widow and my income is 16,620 per year. I do not qualify for food stamps or any other assistance. I don’t know how these people get away with it.
Report Post »Darla_K
Posted on March 8, 2012 at 10:43amI saw and commented on this story yesterday and this young lady reminds me of a OW protester crying and snibing about her fair share. She honestly believes that she is entitled to free food paid for by the tax payers. She needs to sell one of her houses and her car if she has already spent her winnings and is running short on food. I feel for you, but can’t quite reach you. You are hanging out in the looney space area to far from me.
Report Post »REPUB1
Posted on March 8, 2012 at 10:47amDONT you DARE FEEL sorry for this piece of COW DUNG…
Report Post »COFemale
Posted on March 8, 2012 at 10:42amShe already bought a new house and a car with cash; there is probably 200,000 of the 500,000 gone. So dear Lord how will she live on 300,000? Oh the horror. So tell me what bills does she have other than electric, gas, water, sewer, car gas and food that everyone else has to pay. So she has another house, sell it, rent it out to get the extra income if you own it. If you don’t own it, then you do not have two homes. If the home is your mother’s, perhaps it is time she pay her own way.
Step up to the plate and take some responsibility you mooch.
Report Post »AJAYW
Posted on March 8, 2012 at 11:49am@COFemale
Report Post »Thats a little high. Its said that you can get 5 houses for 10,000.00 in detroit.
cranberry
Posted on March 8, 2012 at 10:35amWhy does it take this much notariety for someone to do something? Shouldn’t states police this type of thing? Isn’t that where my tax dollars are going? Whatever department that is in charge of making sure people aren’t stealing my tax dollars is not doing a good job.
Report Post »Darla_K
Posted on March 8, 2012 at 10:56amOf course the states should be on top of this kind of thievery from its citizens, and illegals. The state workers need to have a meeting and re-group on who should be getting free money from the hard working people of our great country. Right is right and wrong is wrong. In these hard times there is alot of people that need help and I will help them, but not the users. This young lady needs to get a job and quit crying about the bills that she has.
Report Post »marcomark63
Posted on March 8, 2012 at 10:32amDon’t forget that we have allowed this system yo get out of hand. We have been so tolerent of letting the goernment increase there presece in our lives that this has happened. The more the gov’t taxes the more ways we find to cheat the system. We don’t provide the stellar education that this counrty should provide. If we were a better educated people we would have more opportunities to help those who can’t help themselves. The entitlement mentality is going to be very difficult to push back. But we need to start now so we won’t have any more of these kind of people anymore. don’t blast her for thinking this way, it’s our fault. But direct her how to be a better person and citizen.
Report Post »USPATRIOT101
Posted on March 8, 2012 at 10:21amTo act as if receiving welfare (tax dollars) is ok after winning the lottery is bull. She knows exactly what she‘s doing and to hear her mother’s response tells me exactly where she gets her morals. This is what the nanny state creates. She knew well enough how to qualify for food stamps, now she’s too stupid to know when to get off the program? “Bull” This is fraud plain and simple.
Report Post »turkey13
Posted on March 8, 2012 at 10:39amCome on folks this isn’t right – she didn’t use food stamps to buy the tickets. I’v been behind food stamp people and they always seperate the beer, ciggies, wine and dog food to the side and pay cash for those.
Report Post »Intense66
Posted on March 8, 2012 at 11:46amTurkey13….
Report Post »There are so many ways around that! I’ve seen it time and time again where people “sell” their food stamps/cards for pennies on the dollar! They don’t want the food, they just want the money. I have also seen, and reported to authorites regarding a convenience store that allowed individuals to use their food stamps for gas, cigarettes and beer and I know that it wasn’t an isolated incident…it happens so often it’s deplorable! If this woman thinks it’s OK to take money from state government after winning the lottery…she is willing to sell her “food” money too! It’s obvious she has no moral compass!
mike_trivisonno
Posted on March 8, 2012 at 10:15amWelfare fosters criminal thinking and criminal acts and rewards them with food.
Making people into lab rats.
Report Post »Mark0331
Posted on March 8, 2012 at 10:14amShe is probably getting a lawyer right now…somehow she sees this as a ‘violation of her rights’.
Report Post »ExpertShot
Posted on March 8, 2012 at 10:12amI can tell you one thing, if the Army overpays someone, they take it back in one lump sum, even if it means the soldier not getting paid that month. They need to take back all of her overpayments at once & charge her with fraud.
Report Post »Liberalismsamentaldisorder
Posted on March 8, 2012 at 10:17amNEVER HAPPEN. The dems got this vote locked up for life. Another drone that can’t survive with government aide.
Report Post »s0ck_monkey
Posted on March 8, 2012 at 11:39am@Expershot….you got that right! It happened to me three times in 20 years – all three times it was from screwups at DFAS, not from anything I did.
And don’t even get me started on paying back the balance on a government travel card after being TDY for 60 days…
Report Post »JP4JOY
Posted on March 8, 2012 at 10:10amSadly there are thousands or maybe even millions of cheaters scamming “the system”. People who fake or misrepresent disabilities, people living in mansions getting housing assistance. Collecting unemployment benefits and working under the table and or not looking for work, I could go on for pages, I’m quite sure of that. If people aren’t raised with morals and conscience or a sense of personal responsibility there will always be those who scam others.
Report Post »AmericanStrega
Posted on March 8, 2012 at 10:10amFINALLY some good news.
Report Post »Liberalismsamentaldisorder
Posted on March 8, 2012 at 10:09am1 down, 50 million to go.
Report Post »cemerius
Posted on March 8, 2012 at 10:09amDon‘t worry she will be abck on Gubment assistance next year when her undeducated butt goes bankrupt with all that bling bling and baby’s daddys
Report Post »USPATRIOT101
Posted on March 8, 2012 at 10:56am…and barack is cutting funds for disabled vets.
Report Post »Danzig
Posted on March 8, 2012 at 10:08am“But it‘s nobody’s business if she’s not breaking the law.” – Clayton’s mother.
Hate to inform her mother, it is everyone’s business. By the way, how was her daughter able to purchase lottery tickets if she is poor and on food stamps?
Report Post »ExpertShot
Posted on March 8, 2012 at 10:17amExactly & technically she IS breaking the law b/c she’s required to notify the government any time her income changes…which she didn’t do.
Report Post »JoeKing
Posted on March 8, 2012 at 11:02amExcellent point!
Report Post »Pontiac
Posted on March 8, 2012 at 1:18pm“But it‘s nobody’s business if she’s not breaking the law.”
Report Post »She’s taking hard earned tax payer dollars and depriving those that actually need assistance.
How is it NOT everyone’s business???
They are nothing but parasitoids.
ColoradoMaverick
Posted on March 8, 2012 at 9:59amYou see, positive things come from news stories like this. This clueless woman obviously is a victim of her own stupidity and her own lack of self worth, self reliance and self dignity. She needs to get a job. She needs to get a life. She needs to learn how to give back to others after a lifetime of getting.
Report Post »She caught a nice break when she won the lottery. She should use this money to get a real education and invest in herself. I wish her luck with that.
Personally, I think she will be broke in 2 years and back on welfare.
oldguy49
Posted on March 8, 2012 at 10:07ami agree she will probably be broke in a couple of years………..she already has the obama mentality of living off the gov
Report Post »Razorhunters
Posted on March 8, 2012 at 10:08amless time than that…1yr max.
Report Post »Liberalismsamentaldisorder
Posted on March 8, 2012 at 10:10am8 months max….
Report Post »Leslie Anne
Posted on March 8, 2012 at 10:33amWell, she’s certainly got what it takes for a career in politics.
Report Post »Kerstile
Posted on March 8, 2012 at 10:43amMost lottery “winners” burn through the money very rapidly and end up right where they were before the windfall. My question is, does the benefit take into account only current income or do solid assets like houses get counted. IMHO, if you own property, that value needs to be counted. We need to redefine “poor”. You are not “poor” if you own property. Food stamps should be for those who have hit rock bottom for whatever reason: no earned income and no assets whatsoever which should include the assets of family members. Why is society failing? The family is failing. Families need to take care of their own. Hint: taking care of your own means telling your lazy brother that he needs to get a job or he doesn’t sit at the dinner table. Make families do that and watch the welfare roles shrink by 97% (obviously, not everyone has family). Yes, I am a mean person. I’m a libertarian. Geez, taking care of one‘s self and one’s family. What a concept.
Report Post »JoeKing
Posted on March 8, 2012 at 10:54amYeah, good luck with that. This chic is human waste. There’s a term for people who are white trash come into money and blow it all without care. She bought some houses some cars who knows what else. You heard her, she is broke and I believe her. She doesn’t have a dime of that money left. Now she is jobless, educationless, and soon to be moneless.
Report Post »