Winnsboro Mayor Arrested on Medicaid Fraud Charges
The mayor of Winnsboro, Louisiana, was taken into custody on Tuesday, facing six counts of government benefits fraud. The Louisiana Department of Health’s Medicaid Fraud Division indicated that Mayor Alice Wallace allegedly received around $75,000 in benefits she wasn’t entitled to.
Wallace reportedly misused Medicaid benefits along with her dependent from 2021 to 2026. During this time, she is said to have failed to report an official salary that would have disqualified her from the programs she continued to utilize.
On Tuesday, Wallace turned herself in and was processed at the East Baton Rouge Parish Prison. While it was initially suggested she would await a bond hearing, her bond was eventually set at $12,000.
Before her arrest, Wallace had been serving as mayor since winning a special election in late 2022, in a town with about 5,000 residents. This arrest comes just weeks before the upcoming mayoral election on May 16th, where she was vying for a second term.
Investigators suspect that the alleged wrongdoing took place in two phases: before and after she assumed office. They claim Wallace didn’t provide necessary updates related to her marital status or income from a prior job, which she neglected even after starting her public salary as mayor. By not disclosing this information, both she and her dependent continued to access Medicaid benefits that they were no longer eligible for.
Attorney General Liz Murrill explained that Wallace failed to inform the LHD about changes in household income and marital status, while also misrepresenting the availability of employer-provided health insurance—factors crucial for Medicaid eligibility.
“It doesn’t matter who you are—if you defraud the hardworking taxpayers of Louisiana, you’re going to jail,” said Murrill, commenting on the situation. “Wallace was arrested for knowingly concealing and failing to disclose material facts affecting her and her dependents’ continued eligibility to receive benefits from the Louisiana Department of Health Medicaid program,” her office added.
Wallace stated to a local outlet that she had been instructed by her lawyer not to share further comments regarding the situation. Still, in a now-deleted Facebook post, she expressed confidence in her chances, claiming that she was “still going to win.”
“They just energized Team Wallace… I do believe that I will be vindicated,” she wrote. “The devil is trying to embarrass and discredit leadership to possess power again through those who know nothing… It’s election time; what else you got! I’m still standing!!”
Under Louisiana law, committing fraud concerning government benefits can lead to serious repercussions, including fines and imprisonment, depending on the amount involved and the number of charges.
Authorities obtained an arrest warrant from the 19th Judicial District Court, which led to Wallace’s surrender. The arrest highlights an intensified focus on Medicaid oversight at both state and federal levels, where efforts are underway to combat fraud and abuse in government health programs. A specific court date for Wallace has yet to be disclosed.
