State cuts lottery winner's benefits

Mar 8, 2012, 7:28 am (106 comments)

Michigan Lottery

Michigan woman who won $1M continued to collect $200 a month in food stamps

A Lincoln Park, Michigan, woman who won $1 million in the state lottery but continued to get food stamps has an unusual connection to the legislator seeking to outlaw what she was she's doing.

Amanda Clayton, 24, won $1 million in the lottery in September and until recently was still receiving $200 a month in food stamps to feed her and her two children.

Late Wednesday, the state Department of Human Services said Clayton is now no longer getting food stamps after department officials took her off the program.

Clayton's use of taxpayer assistance after buying a new home and car with her lottery winnings follows another case of a Bay County man getting food stamps after his $2 million pay day from the lottery in 2010. That prompted state Rep. Dale Zorn to get the state House to pass legislation last month that would throw large-sum lottery winners off the welfare rolls. Legislation is pending in the Senate.

"State assistance, our tax dollars, is meant to go to those who are truly in need," said Zorn, R-Ida. "It's not meant to go to those who won big in the lottery."

In a strange twist, Zorn is a distant cousin of the grandmother of Clayton's ex-boyfriend, Joshua Ormanian of Taylor, who says Clayton went on "an insane shopping spree" after winning.

"I'm glad the person who is fighting this is actually related to us," said Rebecca Lane, 68, of Taylor, whose maiden name is Zorn and recalls meeting Rep. Dale Zorn at a family reunion in Monroe County. "There are too many people who are legitimately in need and (Clayton is) definitely not one of them."

Zorn, 58, was unaware of the family connection until The Detroit News asked about it Wednesday and doesn't recall meeting Lane. But Zorn said he checked with a cousin and family historian who verified Lane is "indeed a long distance cousin," five or six times removed.

The legislator said he introduced the bill in October, nearly five months before news of lottery winner Amanda Clayton's use of food stamps went viral Wednesday on the Internet.

Amanda Clayton would not grant The News an interview, but was not breaking any law, said her mother, Euline Clayton of Lincoln Park.

"I'm not saying it's the right thing to do," Euline Clayton said of her daughter's use of food stamps. "But it's nobody's business if she's not breaking the law."

Amanda Clayton may have broken the law if she continued to accept food stamps after her income and assets exceeded the legal limit for assistance.

To qualify for food stamps, recipients must have income below a threshold. The state last year put in place asset tests for those on welfare and food stamps.

"The person in question hasn't been eligible for a long time," said DHS spokesman Dave Akerly.

A statement issued Wednesday evening from department Director Maura Corrigan said Clayton is "now no longer receiving benefits," but it was unclear when the action was taken.

"DHS relies on clients being forthcoming about their actual financial status," she said. "If they are not, and continue to accept benefits, they may face criminal investigation and be required to pay back those benefits."

After taking a $700,000 lump sum and paying taxes, Clayton pocketed about $500,000 and bought a new home and car, Euline Clayton said.

News of Amanda Clayton remaining on food stamps was first reported this week by WDIV-TV (Channel 4). In an interview, the single mother of two said she's still "struggling" after winning big on the Michigan Lottery's "Make Me Rich!" television show.

"I thought that they would cut me off, but since they didn't I thought maybe it was OK because I'm not working," Clayton told WDIV. "I feel that it's OK because I have no income, and I have bills to pay. I have two houses."

House Bill 5032 would require the Michigan Lottery to forward names of any resident who wins over $1,000 to DHS to be cross- referenced with public assistance roles, according to Zorn.

DHS can't track whether food stamp recipients have lottery winnings making them ineligible to receive assistance, Akerly said.

If the lottery winner is on assistance, House Bill 5033 would require DHS to assess the person's assets to determine if they are eligible for aid, Zorn said.

"Until the bill's passed, apparently it's legal, and people need to leave her alone," Euline Clayton told The Detroit News.

Zorn said he finds Clayton's claim she's struggling financially "very hard to believe," given she recently paid cash for a new car and second home.

"It doesn't seem to me that a person who can do that should be on assistance," Zorn said.

Amanda Clayton got on the "Make Me Rich!" game show after entering $10 worth of nonwinning instant tickets in the lottery's Instant Replay Contest, according to a state lottery press release. Food stamps can't be used to buy lottery tickets.

Euline Clayton said her daughter is "stressed out" from the international media attention she has attracted.

In a statement, U.S. Sen. Debbie Stabenow, D-Lansing., also called for federal legislation requiring states to prevent lottery winners from getting food and cash assistance. "At a time when so many out-of-work Michigan families are in real need of assistance, it's outrageous for people to cheat and defraud the system like this," said Stabenow, chairwoman of the Senate Agriculture, Nutrition and Forestry Committee, which oversees funding for the food stamp program through the Farm Bill.

Detroit News

Comments

sully16's avatarsully16

Something is not right with her story, I know someone who has 2 kids and works part time, she collects $265.00 per person thats $795.00 per month, she gets no cash.

She owns the first house, maybe she inherited it, but how does she pay for insurance, electricity, gas, water, etc.

She probably has a job, working under the table, most times when you work under the table, someone is doing you a favor, to help hide income because, you are collecting, welfare, unemployment or your dodging child and or spousal support.

Another reason someone pays under the table is because they are not paying you fair market value for your services, in which you are screwed out of your Social Security credits.

She clearly has a pet, what does the dog eat ?

Is she renting out one of those houses ? because thats rental income, or is that a hidden cash transaction ?

CDanaT's avatarCDanaT

     Well, that was an interesting read. Shows common (or lack of ) sense in typical government programs and recipients thereof. Kudos to Rep. ZORN  and Sen. Stabenow for being on the offense to curb excessive "freebies" to a person(s) that doesn't actually need it. Clayton takes home over $500K and is still struggling with 2 houses and a new car ? <lack of common sense>  Everyone say big "AWWWWW POOR BABY".. Now, this house bill #5302 is a good thing  Thumbs Up<shows some common sense>.....
        The Michigan lottery, established in May 1972, must be an affiliate of the state government as most lotteries are. Their mission statement includes," To operate all games and bureaus functions with nothing less than total integrity". Thumbs Up Good motto, gotta like it.......... Lotteries have to issue a tax form on a win of that magnitude, remove taxes before the check is cut and last I knew Michigan has a state income tax. ((I BET SULLY KNOWS !!!!!)))  Lemme check to be sure....YEUUUUP, there it is right there in black and white!! As of OCT 1st, 2007 the Michigan tax rate is at 4.35%... Are you telling me there is no program in place that matches 2 state sponsored programs to interact with each other like the tax bureau and DHS ??? Especially after almost 40 years of existence of the lottery<lack of common sense there>....Nobody in the Michigan government thought of this kind of potential issue from the 1970s until now ???  Hmmm, gotta go with <lack of common sense> there. Isn't it the states job to stop waste abuse and fraud ??? How many $$ have gone out the door over the last 40 years ?? <going w/lack of Common Sense on this too>
      This kind of makes me wonder...If a state government takes this long to get their act together ???   <scratching head> I wonder how long it will take the FEDS ???     Thud......Just an observation and an opinion on my part.

VenomV12

Here is my problem who criticize people like this woman for still taking food stamps. That measly $200 a month she is getting in assistance, she paid for it in the $250,000 plus in taxes she paid. At that rate she will recoup her money in about 100 years or so. The other guy who started all of this he paid about $1.2 million in taxes so it will be several lifetimes before he gets his money back. 

They are some of the biggest taxpayers in the country, they should be getting thank you letters from people. I bet half the people complaining about them are either living off their tax money they paid or have family members that are through some sort of social program. 

Considering she won a million dollars initially and only got $700,000 before taxes, she was already in my opinion taxed an extra $300,000 right off the bat so her real taxes were closer to $600,000. If you win $500 on a scratch off ticket you get $500 and you don't pay taxes so I don't understand why when you win large amounts it gives them the right to effectively steal back almost half of the money. 

The same politicians showing fake outrage over this are the same ones that pass large tax breaks for corporations and their buddies so they pay virtually no taxes. For example if you own 10 Subway restaurants you get no tax break and pay your full taxes, but if you are an auto plant or something else like that, you pay virtually no taxes. That does not seem fair now, does it?

The problem with Amanda Clayton and the other guy is that they are poor and uneducated and don't know how to fight back and call people out on their hypocrisy. 

In summation, I don't necessarily think they should be taking the assistance, but it is being paid out of their money, not yours or anyone elses.

dpoly1's avatardpoly1

I am sure that some people would take exception to my keeping my disability benefits if I won a large jackpot, but I worked for 30 years to earn those benefits!

 

I know that this is off subject, but there was a $60,000,000 Powerball Winner in Rhode Island last nite!

Here come the conspiracy freaks!  Crazy  Crying  Sad Cheers

CDanaT's avatarCDanaT

Aaaaaaamen DP....watch the  age/race/political  card  come crankin" out of the cyber world on this one....want some Lurking and  Cheers ???  pull up a chair and set-a-spell.

OldSchoolPa's avatarOldSchoolPa

I am glad common sense prevailed in this case. 

I also hope the RI winner was not my former landlord....snake!  Thief kept my security deposit as well as that of my roommates.

When one wins the lottery, any ties to public aid should be cut.  She can reapply after she has blown through all her winnings just like Leroy Fick.

sully16's avatarsully16

Quote: Originally posted by VenomV12 on Mar 8, 2012

Here is my problem who criticize people like this woman for still taking food stamps. That measly $200 a month she is getting in assistance, she paid for it in the $250,000 plus in taxes she paid. At that rate she will recoup her money in about 100 years or so. The other guy who started all of this he paid about $1.2 million in taxes so it will be several lifetimes before he gets his money back. 

They are some of the biggest taxpayers in the country, they should be getting thank you letters from people. I bet half the people complaining about them are either living off their tax money they paid or have family members that are through some sort of social program. 

Considering she won a million dollars initially and only got $700,000 before taxes, she was already in my opinion taxed an extra $300,000 right off the bat so her real taxes were closer to $600,000. If you win $500 on a scratch off ticket you get $500 and you don't pay taxes so I don't understand why when you win large amounts it gives them the right to effectively steal back almost half of the money. 

The same politicians showing fake outrage over this are the same ones that pass large tax breaks for corporations and their buddies so they pay virtually no taxes. For example if you own 10 Subway restaurants you get no tax break and pay your full taxes, but if you are an auto plant or something else like that, you pay virtually no taxes. That does not seem fair now, does it?

The problem with Amanda Clayton and the other guy is that they are poor and uneducated and don't know how to fight back and call people out on their hypocrisy. 

In summation, I don't necessarily think they should be taking the assistance, but it is being paid out of their money, not yours or anyone elses.

If she's poor and uneducated, thats her FAULT !

Tax payers pour billions into education, if she failed to learn anything, thats her fault.

It is not okay to expect taxpayers to care  of anyone, Period!

If you can afford lottery tickets, you don't need taxpayers to support you !

If her own family won't take care of her, why should we?

I don't care how much came of the top of her lottery winnings, It's not okay to continue to cheat taxpayers who work and can't afford lottery tickets for themselves.

She's out to get as much for herself with little or no effort, not once does she mention using THAT MONEY TO GET HIGHER EDUCATION, IT'S ALL ABOUT THE STUFF SHE CAN HAVE.

And, because she has no income and 2 houses, when she files her taxes, she will probably GET A NICE PORTION BACK.

CDanaT's avatarCDanaT

Sully, you make excellent points all the way through and Venom has some points as well.....The one issue I failed to see in the article was about personal integrity on her part to volunteer to get off the gov system of welfare...As far as the other guy mentioned in the article, I believe I recall him being interviewed and he claimed he asked the representative about being removed. He claimed at that time they told him he was okay to continue receiving benefits. I could be wrong on how that was played out.  Either way, its a lack of honestly and personal pride to continue with these types of actions.....No No

  Just remember...You cant fix morality, no matter how much you regulate it. Chair

VenomV12

Quote: Originally posted by sully16 on Mar 8, 2012

If she's poor and uneducated, thats her FAULT !

Tax payers pour billions into education, if she failed to learn anything, thats her fault.

It is not okay to expect taxpayers to care  of anyone, Period!

If you can afford lottery tickets, you don't need taxpayers to support you !

If her own family won't take care of her, why should we?

I don't care how much came of the top of her lottery winnings, It's not okay to continue to cheat taxpayers who work and can't afford lottery tickets for themselves.

She's out to get as much for herself with little or no effort, not once does she mention using THAT MONEY TO GET HIGHER EDUCATION, IT'S ALL ABOUT THE STUFF SHE CAN HAVE.

And, because she has no income and 2 houses, when she files her taxes, she will probably GET A NICE PORTION BACK.

Did you actually read anything I wrote or did you just want to spout your diatribe and write in the biggest letters possible regardless?

Once again that money she is collecting is hers. SHE PAID MASSIVE TAXES.

If you are this upset about a woman that paid $600,000 in taxes getting back about $200 a month, then you should be absolutely livid about people like Mitt Romney who paid little to no taxes on hundreds of millions of dollars. I believe that he was able to transfer something like $100 million to his sons tax free and pay less than half of what we would on another $20 million or so.

You just completely don't grasp the concept that she paid taxes and taxes far in excess of what she is getting do you. SHE IS THE TAXPAYER.

And I bet she had paid way more in taxes than you ever have. By the way in my experience the people like yourself who constantly scream about taxpayers this and that are usually the ones that pay little to no taxes.

sully16's avatarsully16

That money she is collecting in food stamps is not her's, she might be the tax payer now, but it's still  not her personal bank account.,

People like me who scream the loudest don't pay taxes, REALLY !!!!!

Your experience,,, wow, not much experience we shelled out more than you probably made, and I am sick of not getting any of it back, I am sick of supporting people who  have no desire to support themselves.

I am sick of human garbage that takes and takes and takes.

You will be blocked so go ahead and defend the thieves of the world who refuse to work.

Cletu$2's avatarCletu$2

Quote: Originally posted by sully16 on Mar 8, 2012

That money she is collecting in food stamps is not her's, she might be the tax payer now, but it's still  not her personal bank account.,

People like me who scream the loudest don't pay taxes, REALLY !!!!!

Your experience,,, wow, not much experience we shelled out more than you probably made, and I am sick of not getting any of it back, I am sick of supporting people who  have no desire to support themselves.

I am sick of human garbage that takes and takes and takes.

You will be blocked so go ahead and defend the thieves of the world who refuse to work.

I Agree!   You tell 'em,girl!!

time*treat's avatartime*treat

In a strange twist, Zorn is a distant cousin of the grandmother of Clayton's ex-boyfriend, Joshua Ormanian of Taylor, who says Clayton went on "an insane shopping spree" after winning.

-Jeez, how small is this town (or the minds in it)? They hunted down an ex to comment on this story? Disapprove

GASMETERGUY

Quote: Originally posted by VenomV12 on Mar 8, 2012

Here is my problem who criticize people like this woman for still taking food stamps. That measly $200 a month she is getting in assistance, she paid for it in the $250,000 plus in taxes she paid. At that rate she will recoup her money in about 100 years or so. The other guy who started all of this he paid about $1.2 million in taxes so it will be several lifetimes before he gets his money back. 

They are some of the biggest taxpayers in the country, they should be getting thank you letters from people. I bet half the people complaining about them are either living off their tax money they paid or have family members that are through some sort of social program. 

Considering she won a million dollars initially and only got $700,000 before taxes, she was already in my opinion taxed an extra $300,000 right off the bat so her real taxes were closer to $600,000. If you win $500 on a scratch off ticket you get $500 and you don't pay taxes so I don't understand why when you win large amounts it gives them the right to effectively steal back almost half of the money. 

The same politicians showing fake outrage over this are the same ones that pass large tax breaks for corporations and their buddies so they pay virtually no taxes. For example if you own 10 Subway restaurants you get no tax break and pay your full taxes, but if you are an auto plant or something else like that, you pay virtually no taxes. That does not seem fair now, does it?

The problem with Amanda Clayton and the other guy is that they are poor and uneducated and don't know how to fight back and call people out on their hypocrisy. 

In summation, I don't necessarily think they should be taking the assistance, but it is being paid out of their money, not yours or anyone elses.

Your reasoning is a bit convoluted.  This woman is not "getting her own money back".  She is gaming the system; pure and simple.

If food stamps was nothing more than getting your own money back, then I qualify for food stamps as would anyone else paying taxes.

But what really bothers me about this story is the fact the state had no mechanism for removing people from welfare when their situation changes.  This woman's situation changed but she did not.  She continued receiving food stamps.  Only when brought to the attention of the entire country was something done and that required a new law.

CDanaT's avatarCDanaT

Quote: Originally posted by VenomV12 on Mar 8, 2012

Did you actually read anything I wrote or did you just want to spout your diatribe and write in the biggest letters possible regardless?

Once again that money she is collecting is hers. SHE PAID MASSIVE TAXES.

If you are this upset about a woman that paid $600,000 in taxes getting back about $200 a month, then you should be absolutely livid about people like Mitt Romney who paid little to no taxes on hundreds of millions of dollars. I believe that he was able to transfer something like $100 million to his sons tax free and pay less than half of what we would on another $20 million or so.

You just completely don't grasp the concept that she paid taxes and taxes far in excess of what she is getting do you. SHE IS THE TAXPAYER.

And I bet she had paid way more in taxes than you ever have. By the way in my experience the people like yourself who constantly scream about taxpayers this and that are usually the ones that pay little to no taxes.

Venom, while i know the above was directed at Sully, there are a few thing you may want to adjust....she did not pay $600,000. in taxes.....according to her own video statements, she VERBALLY chose to take the lump sum of $700,000.00 and after she netted just over $500,000.00 (not sure how much over the 500k)......as opposed to accepting the payments over so many years adding up to a Million. Lotteries are pretty clear on the lump sum or annuity.....Don't worry V, the feds are gonna take more, cause shes up in the 35% bracket for 2011.....Out of 700K they will get close to 250K.....
   While she is a taxpayer...just because you contribute to the system in a big lump some,doesn't guarantee you and your family a right to collect from it. That should come from a continually verified qualification. Looks as though she failed to verify.
   With that being said I am one of those taxpayers who is upset over frivolous government mismanagement and the people who illegally steal/unethically take from the system. 
   You may want to recant that statement about betting on taxes paid. I know at least one person in here that has paid in during the last 8 years more than she has.....Then again that's not what the story is about ....
         Here's hoping you and I get that same opportunity to pay our share very soon !!!   Cheers

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