Prosecutors say a Detroit man turned the pandemic safety net into his personal payout, siphoning off more than $400,000 in unemployment benefits and rental assistance that was meant for people in crisis. Authorities allege he used the personal information of at least a dozen people to file bogus claims and redirect emergency funds into accounts he controlled. After a preliminary hearing on Monday, the case was sent to the Wayne County Third Circuit Court, with the defendant due back before a judge on May 11.
According to a press release from the Michigan Attorney General, 58-year-old Stanley Butts was arraigned in early February and now faces a stack of felony charges tied to the alleged scheme. The Attorney General's office says he pulled in more than $300,000 from the Unemployment Insurance Agency and more than $100,000 in COVID Emergency Rental Assistance administered by the Michigan State Housing Development Authority. The same release notes that Butts was given a $200,000, 10 percent bond after his arraignment.
How prosecutors say the scheme worked
Investigators allege that Butts did not just game the system, he did it using other people’s identities. As reported by CBS Detroit, authorities say he used the personal data of at least 12 individuals to submit claims, then funneled the resulting payments into accounts he controlled. A magistrate judge bound the case over to the Wayne County Third Circuit Court after a preliminary exam, and CBS reports that Butts is scheduled to return on May 11 for pretrial proceedings.
Why this matters locally
The allegations landed in the middle of a long and messy cleanup from pandemic-era fraud that rattled Michigan’s relief programs. FOX 2 Detroit reported that state audits flagged more than $8 billion in questionable or improper unemployment payments at the height of the crisis, forcing officials to scramble to tighten controls and claw back money. Prosecutors say that cases like this one are part of an ongoing push to chase down fraud tied to emergency relief, rather than letting those dollars quietly disappear.
Charges and potential penalties
The Attorney General’s filing lists a long roster of charges: one count of false pretenses for $100,000 or more, three counts of false pretenses between $50,000 and $100,000, two counts of false pretenses between $20,000 and $50,000, 12 counts of identity theft, and two counts of using a computer to commit a crime. Each is a felony, and some carry maximum prison terms of up to 20 years, according to the Michigan Attorney General. The office says it will continue working with the Unemployment Insurance Agency and the Michigan State Housing Development Authority to identify victims, seek restitution, and pursue criminal accountability in the case.
