Amanda ClaytonRemember Amanda Clayton, the Michigan $1 million lottery winner Blippitt first told you about last month who tried to stay on food stamps and eventually lost her benefits?

UPDATE: Amanda Clayton is dead

Things have gone from bad to worse for Clayton, who was arrested last night in Michigan on two felony counts of welfare fraud. You may recall that she failed to report her winnings and employment while receiving $5,475 in food and medical assistance.

“It’s simply common sense that million dollar lottery winners forfeit their right to public assistance,” Michigan Attorney General Bill Schuette said in a statement. “We will continue to work with local, state and federal authorities to uphold state laws intended to ensure wise stewardship of taxpayer dollars.”

Michigan public assistance programs require that participants report income and employment

Clayton, 25, was cut off from food aid after she told a local TV station that she was still getting $200 per month in food aid, given by the state through a “Bridge Card.” Clayton won $1 million on September 12 in the “Make Me Rich!” game, sponsored by the Michigan lottery.

She had been getting $5,475 in public food and medical assistance from August 2011 through last month. She was employed from June 2011 through October 2011, according to an investigation performed by Michigan’s Department of Human Services. The state Attorney General’s office says that her income during that time from her employment was never reported to DHS officials, as is mandated by state law.

During her arraignment today, a district court judge set bond at $10,000 for Clayton, who has been in police custody since last night.

A welfare participant’s failure to inform the state’s Department of Human Services is a felony punishable by up to four years in prison.

Clayton is due back in court for a preliminary examination on May 1.

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