A Las Vegas woman was arrested Friday after an investigation into what Nevada law enforcement officials called a large-scale fraud scheme that involved the trafficking of Supplemental Nutrition Assistance Program benefits.
Mychelle Lay is accused of establishing a fake business in the Las Vegas Valley that was approved to receive federal electronic SNAP benefit transactions in December 2024, according to a news release from Gov. Joe Lombardo’s office.
An investigation by the Nevada Highway Patrol found that the business was used to facilitate fraudulent SNAP transactions, the release said. Formerly known as food stamps, SNAP represents the largest public anti-hunger program in the United States.
Financial records, according to the investigation, showed that the business processed hundreds of thousands of dollars of transactions between January and September 2025. Numerous SNAP profiles, the release said, were compromised, though the exact number was yet to be determined as of Friday.
The investigation also identified potential fraud connected to Medicaid enrollment. Nevada Division of Social Services and Nevada Attorney General’s Office aided in the investigation, along with a host of federal agencies.
“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,” said Lombardo, a Republican, in the news release. “We do not tolerate any level of theft of taxpayer dollars and will continue to work with law enforcement as the investigation proceeds.”
Robert Thompson, administrator for the Nevada Division of Social Services, said a division employee first noticed suspicious activity related to the business.
“Most of the applications were submitted online and were processed in accordance with federal eligibility guidelines,” Thompson said in the release. “As fraud tactics evolve, DSS continues to evaluate additional technology tools to strengthen fraud detection and protect the integrity of these programs.”
Lay was booked into the Clark County Detention Center on Friday, the release stated. A check of an online jail roster Friday afternoon did not produce her name.
Lay has been charged with one count of theft of over $100,000, one count of public assistance fraud, one count of conducting multiple fraudulent transactions through and enterprise or occupation, and 11 counts of obtaining or using the identification of another person, according to the release.
Contact Bryan Horwath at bhorwath@reviewjournal.com. Follow @BryanHorwath on X.
