Woman Charged with Defrauding Washington County Out of $20,000

A 27-year-old Cottage Grove woman was overpaid more than $20,000 in Washington County aid after she allegedly failed to report nearly $300,000 in winnings at casinos since 2007.

Amber Louise Reyes was charged by the Washington County Attorney’s Office last week with wrongfully obtaining government assistance.

According to the criminal complaint:

Washington County detectives started looking into a fraud referral from Washington County Community Services on Jan. 20, 2010 after it was reported that she failed to disclose gambling winnings while receiving benefits from Washington County in the form of food support, medical assistance and childcare help.

Detectives believe Reyes won $2,640 in 2007, $212,880 in 2008 and $63,600 in 2009.

When detectives spoke with Reyes, she admitted to winning almost $300,000 at casinos since 2006 and never reporting it as income to her caseworker, the complaint states. Reyes allegedly claimed she “did not think she had to report it because she spent all the money right away and most years lost money.”

Reyes told detectives that she won jackpots in excess of $10,000 some nights, but because she spent it all right away, she did not believe it needed to be reported, the complaint states. Detectives confirmed that she never deposited winnings into her bank account, but ATM activity indicated she withdrew money frequently at Treasure Island Casino.

According to the complaint, several applications in Reyes’ case file requested disclosure of money from sources other than work, including under an income such as gambling winnings.

Reyes always reported no and never reported winning, the complaint states.

Based on Reyes’ failure to report her gambling winnings, overpayments of benefits were calculated by her caseworker—from Feb. 18, 2008, to Oct. 21, 2009—for the amount of $8,792.45, the complaint states. Overpayments were also calculated for childcare –from March 10, 2008, to March 9, 2009—to be $11,755.50.

The total amount of overpayments she received for food support, medical assistance and childcare was allegedly $20,547.95.

If convicted, Reyes faces a maximum of 10 years in prison and up to $20,000 in fines.