A Las Vegas woman has been arrested on suspicion of trafficking Supplemental Nutrition Assistance Program (SNAP) benefits as part of an alleged large-scale fraud scheme.
Mychelle Lay was taken into custody Friday following an investigation by Nevada State Police (NSP) into suspicious activity flagged by the Nevada Division of Social Services (DSS). Lay, who was already on probation for possession of a controlled substance and using another person’s identifying information, came under scrutiny after several cases were identified for review.
Court and police records indicate that in December 2024, Lay established a fictitious business in the Las Vegas area that was approved to accept SNAP EBT benefits and began operating in January 2025. Investigators say the business was used to facilitate fraudulent SNAP benefit transactions. Financial records show the business processed hundreds of thousands of dollars in transactions between January and September 2025.
Police also discovered numerous individual profiles connected to fraudulent activity, and evidence suggesting possible Medicaid enrollment fraud, although the full scope of affected accounts has not yet been determined.
Governor Joe Lombardo praised state agencies for identifying and investigating the scheme, stating, “We do not tolerate any level of theft of taxpayer dollars and will continue to work with law enforcement as the investigation proceeds.”
According to Robert Thompson, Nevada DSS Administrator, initial suspicion arose when caseworkers noticed multiple benefit applications tied to the same address. He emphasized that most applications were submitted online and processed according to federal eligibility guidelines, and that DSS continues to evaluate technology tools to strengthen fraud detection.
Lay was booked into Clark County Jail on multiple felony charges, including:
1 count of Theft over $100,000 (NRS 205.0832)
1 count of Fraudulent Acts — Public Assistance (NRS 422A.700)
1 count of Multiple Fraudulent Transactions through an Enterprise or Occupation (NRS 205.377)
11 counts of Obtaining/Using Personal Identifying Information of Another (NRS 205.463)
The investigation is ongoing, with state and federal agencies continuing to review evidence.
