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June 12, 2012

Woman charged with fraud

Officials say she received improper welfare beneftis

BY ART BUKOWSKI abukowski@record-eagle.com

TRAVERSE CITY — A former Traverse City woman faces felony charges after state officials said she received more than $10,000 in improper welfare benefits.

Holly Scott, 52, faces two felony counts of welfare fraud in excess of $500. Officials with the Michigan Department of Human Services said she received benefits she wasn't entitled to in 2009 and 2010.

Scott told state officials her two children lived with her those years and she received benefits to support them, a state report indicates. But officials later learned the children lived with her ex-husband since the couple divorced in 2006.

Scott's ex-husband told state officials he had custody of the children. State officials on at least one occasion inquired about whether or not Scott's claims were true, reports indicate.

"I have asked her directly if they were really with her and she has told me yes," a DHS official wrote in a report.

Records show Scott previously listed addresses in Traverse City and Williamsburg. She now lives in Alpena.

Grand Traverse County Prosecutor Alan Schneider said his office handles a widely varying amount of welfare fraud cases from year to year. The state DHS office is solely responsible for investigating complaints of welfare fraud, so the number of cases charged depends on the state's investigative efforts, he said.

A DHS spokesman declined to comment on the case.

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