Las Vegas Woman Arrested in Alleged SNAP Fraud Scheme

Mychelle Lay accused of running fake business to facilitate fraudulent SNAP transactions worth hundreds of thousands of dollars

Mar. 13, 2026 at 10:34pm

Got story updates? Submit your updates here. ›

A Las Vegas woman named Mychelle Lay was arrested on Friday after an investigation by Nevada law enforcement uncovered an alleged large-scale fraud scheme involving the trafficking of Supplemental Nutrition Assistance Program (SNAP) benefits. Lay is accused of establishing a fake business in the Las Vegas Valley that was approved to receive federal SNAP benefit transactions, which was then used to facilitate fraudulent SNAP transactions worth hundreds of thousands of dollars between January and September 2025.

Why it matters

The SNAP program, formerly known as food stamps, is the largest public anti-hunger program in the United States, providing critical food assistance to millions of low-income individuals and families. Allegations of fraud within the SNAP program undermine public trust and can lead to tighter restrictions and eligibility requirements that make it harder for those in need to access the benefits. This case highlights the ongoing efforts by law enforcement to combat SNAP fraud and protect the integrity of the program.

The details

According to the investigation, Lay's fake business processed hundreds of thousands of dollars in fraudulent SNAP transactions over a nine-month period in 2025. Numerous SNAP profiles were also found to be compromised, though the exact number is still being determined. The investigation also identified potential Medicaid enrollment fraud connected to the scheme. Lay has been charged with one count of theft over $100,000, one count of public assistance fraud, one count of conducting multiple fraudulent transactions through an enterprise or occupation, and 11 counts of obtaining or using the identification of another person.

  • Lay's fake business was approved to receive federal SNAP benefit transactions in December 2024.
  • The fraudulent SNAP transactions occurred between January and September 2025.

The players

Mychelle Lay

A Las Vegas woman who is accused of establishing a fake business to facilitate a large-scale SNAP fraud scheme.

Joe Lombardo

The Republican governor of Nevada, who praised state agencies for identifying the potential fraud and coordinating with law enforcement and federal agencies.

Robert Thompson

The administrator for the Nevada Division of Social Services, who said a division employee first noticed suspicious activity related to Lay's fake business.

Got photos? Submit your photos here. ›

What they’re saying

“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.”

— Joe Lombardo, Governor of Nevada (Las Vegas Review-Journal)

“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, Administrator, Nevada Division of Social Services (Las Vegas Review-Journal)

What’s next

The judge will decide on Tuesday whether to allow Mychelle Lay to be released on bail.

The takeaway

This case highlights the ongoing efforts by law enforcement to combat SNAP fraud and protect the integrity of the program, which provides critical food assistance to millions of low-income individuals and families. As fraud tactics evolve, state agencies must continue to strengthen their fraud detection capabilities to ensure the proper use of taxpayer dollars.