Stanley Butts, a 58-year-old Detroit resident, was ordered on April 27 to stand trial in the 3rd Circuit Court in Wayne County for allegedly stealing multiple identities to obtain more than $400,000 in unemployment benefits and rental assistance. The announcement was made by Michigan Attorney General Dana Nessel.
The case is significant as it involves accusations of exploiting programs intended to support Michigan residents facing financial hardship. Prosecutors allege that Butts used personal information from at least twelve individuals to fraudulently claim over $300,000 from the Unemployment Insurance Agency (UIA) and more than $100,000 in COVID Emergency Rental Assistance payments from the Michigan State Housing Development Authority (MSHDA).
Butts faces several charges including one count of false pretenses involving $100,000 or more—a felony carrying up to twenty years in prison—along with additional counts related to false pretenses at lower thresholds, twelve counts of identity theft, and two counts of using a computer to commit a crime.
Attorney General Nessel said: “Exploiting programs meant to support struggling Michiganders by committing identity theft depletes resources for those in need and harms innocent victims. I am pleased this case has moved forward to trial. My office will continue working with the UIA and MSHDA to pursue those who commit fraud and abuse taxpayer funds.”
Jason Palmer, Director of UIA, said: “Identity theft’s impact is felt far beyond a bad actor’s selfish actions against Michigan’s Unemployment Insurance Agency. It can steal financial security from victims, impacts the bottom line of businesses that pay into the state’s unemployment program, and erodes public confidence in a vital service for residents who lose their jobs. UIA is an eager partner with all law enforcement agencies to bring fraudsters to justice and protect the integrity of this essential benefit for workers.”
Amy Hovey, CEO and Executive Director of MSHDA at the time Butts was arraigned, said: “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.”
The investigation stems from a Memorandum of Understanding between Nessel’s office and MSHDA aimed at prosecuting fraudulent activity related to housing funds; this agreement is set through December 31 unless renewed.
Butts is scheduled for his next court appearance on May 11 for his Circuit Court arraignment. Authorities remind that criminal charges are allegations only until proven otherwise.