Winnsboro Mayor Alice Wallace has been arrested and charged in connection with an alleged Medicaid fraud scheme totaling approximately $75,000, according to officials from the Louisiana Bureau of Investigation.
The arrest, carried out last week by agents under the office of Liz Murrill, follows an investigation triggered by a referral from the Louisiana Department of Health.
Authorities allege that Wallace fraudulently received Medicaid benefits for herself and a dependent over a five-year period from 2021 through 2026.
Investigators claim Wallace failed to disclose critical financial and personal information that would have affected her eligibility for the government assistance program.
According to officials, she allegedly did not report changes in household income, failed to disclose her marital status, and misrepresented access to employer-provided health insurance. Additionally, authorities say her employment with the Town of Winnsboro was not reported—income that would have rendered her ineligible for Medicaid benefits.
The alleged misconduct resulted in a combined loss of $75,000 in taxpayer-funded benefits, officials said. Wallace now faces six counts of government benefits fraud, each tied to the years in which she is accused of improperly receiving assistance.
Following the investigation, Wallace surrendered to authorities on April 21 and was booked into the East Baton Rouge Parish Prison. In a statement, the Attorney General’s office stressed accountability, with Murrill stating:
“It doesn’t matter who you are; if you defraud the hardworking taxpayers of Louisiana, you’re going to jail.”
Wallace has declined to comment publicly on the charges, citing legal advice from her attorney. However, in a statement posted to Facebook, she questioned the allegations, asserting that she has maintained private health insurance since 2021 and suggesting that medical providers could verify her claims.
“I do believe that I will be vindicated,” she wrote.
The case highlights ongoing concerns about fraud within public assistance programs, particularly Medicaid, which serves millions of low-income Americans.
Experts note that while such programs are critical safety nets, enforcement agencies continue to intensify efforts to detect and prosecute fraudulent claims to safeguard public funds.
