Stanley Butts, a 58-year-old Detroit resident, was arraigned before Magistrate Judge Laura A. Echartea in the 36th District Court on charges related to alleged identity theft and fraud involving over $400,000 in unemployment benefits and rental assistance. The Michigan Attorney General Dana Nessel announced the charges, which include one count of false pretenses of $100,000 or more (a 20-year felony), three counts of false pretenses between $50,000 and $100,000 (15-year felonies), two counts of false pretenses between $20,000 and $50,000 (15-year felonies), twelve counts of identity theft (5-year felonies), and two counts of using a computer to commit a crime—one carrying a potential 20-year sentence and another a 10-year sentence.
Authorities allege that Butts used the personal information of at least twelve individuals to secure more than $300,000 in fraudulent Unemployment Insurance Agency (UIA) benefits and over $100,000 in COVID Emergency Rental Assistance from the Michigan State Housing Development Authority (MSHDA). The case was referred to the Department of Attorney General by UIA and MSHDA after an agreement was made in 2024 for joint investigations into large-scale fraud.
Attorney General Nessel stated: “Assistance programs are intended to help people during difficult times, and not only did this individual allegedly siphon off hundreds of thousands from struggling Michiganders but did so by committing identity theft that harmed innocent victims. I would like to thank UIA and MSHDA for referring this matter to my office. We remain committed to pursuing those who commit fraud and abuse taxpayer funds.”
Jason Palmer, Director of UIA, commented: “UIA is committed to administering the state’s unemployment insurance program with integrity while providing fast, fair, and fraud-free service. We work closely with our state partners and law enforcement to aggressively investigate any threat to the Unemployment Insurance Trust Fund so Michigan’s residents can be confident the benefits they are entitled to receive will be there when they need help after losing a job.”
Amy Hovey, CEO and Executive Director of MSHDA added: “Identity theft and fraud undermine the integrity of critical support systems that families rely on in times of need. MSHDA administered the COVID Emergency Rental Assistance program during the pandemic to help keep Michiganders safely housed, and we appreciate Attorney General Nessel’s continued work to hold accountable anyone who attempted to exploit those resources for personal gain.”
Butts received a bond set at $200,000/10%. He is scheduled for a probable cause conference on February 12, 2026, followed by a preliminary examination on February 19.
The Michigan Department of Attorney General serves as the chief legal office for Michigan residents. It addresses community needs such as combating human trafficking and supporting crime victims while managing consumer complaints and issuing alerts about scams. The department also assists with expungements through laws like Clean Slate enacted in 2019. According to its official website, it operates statewide with authority aimed at protecting vulnerable populations across Michigan.
Dana Nessel is serving as Michigan’s 54th attorney general (official website).
Officials remind that criminal charges are allegations; defendants are presumed innocent until proven guilty.
