La.: Winnsboro Democrat Mayor Alice Wallace arrested in $75K Medicaid fraud scheme
OAN Staff Lillian Mann
1:44 PM – Wednesday, April 22, 2026
The mayor of Winnsboro, Louisiana, was arrested Tuesday on six counts of government benefits fraud. According to the Louisiana Department of Health’s Medicaid Fraud Division, the mayor purportedly received approximately $75,000 in unauthorized benefits.
Authorities say that Winnsboro Mayor Alice Wallace (D-La.), and her “dependent,” illicitly utilized Medicaid benefits from 2021 through 2026. During this period, Wallace purportedly failed to disclose an official salary that would have rendered her ineligible for the Louisiana Department of Health (LDH) programs she continued to collect from.
Wallace surrendered to authorities on Tuesday and was booked into the East Baton Rouge Parish Prison. While initial reports indicated she was held pending a bond hearing, her bond was later set at $12,000.
Prior to her arrest, Wallace had served as the mayor of Winnsboro — a town of approximately 5,000 residents — since winning a special election in late 2022. The charges come at a critical political juncture, with the arrest occurring just three weeks before the May 16th mayoral election in which she was seeking a second term.
Investigators allege the misconduct occurred in two distinct phases: before and after Wallace took office.
Authorities claim she failed to provide mandatory updates regarding her marital status and income from a former employer, and continued this pattern after she began receiving a public salary as mayor. By purportedly concealing these changes, Wallace and a dependent continued to utilize Medicaid benefits for which they were no longer eligible.
According to Attorney General Liz Murrill, Wallace failed to notify the LHD of a change in household income, while also not reporting her marital status and intentionally misrepresenting whether employer-provided health insurance was available — all of which are factors used to determine Medicaid qualification.
“It doesn’t matter who you are—if you defraud the hardworking taxpayers of Louisiana, you’re going to jail,” Murrill said. “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 continued in a statement.
Wallace also told the outlet KNOE that she has been advised by her lawyer not to comment on the incident. Nonetheless, she wrote in a since-deleted Facebook post that she is “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…” she added. “It’s election time; what else you got! I’m still standing!!”
Under Louisiana law, government benefits fraud can carry significant penalties including fines and prison time, depending on the amount of money involved and the number of counts filed.
According to the Attorney General’s office, agents reportedly secured an arrest warrant through the 19th Judicial District Court, prompting Wallace to surrender to authorities.
Meanwhile, the arrest comes amid a renewed emphasis on Medicaid oversight both in Louisiana and at the federal level. Under current federal initiatives, there has been a significant push to identify and prosecute fraud, waste, and abuse within government healthcare programs. A specific court date for Wallace has not yet been announced.
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