Stanley Butts, a 58-year-old Detroit resident, was arraigned before Magistrate Judge Laura A. Echartea of the 36th District Court in Detroit on charges related to alleged identity theft and fraud involving over $400,000 in unemployment benefits and rental assistance. The announcement was made by Michigan Attorney General Dana Nessel.
Butts faces multiple felony charges: one count of false pretenses for $100,000 or more (a 20-year felony), three counts of false pretenses for amounts between $50,000 and $100,000 (each a 15-year felony), two counts of false pretenses for amounts between $20,000 and $50,000 (each a 15-year felony), twelve counts of identity theft (each a 5-year felony), and two counts of using a computer to commit a crime—one carrying up to 20 years and another up to 10 years.
Authorities allege that Butts used personal information from at least twelve individuals to obtain more than $300,000 in fraudulent Unemployment Insurance Agency (UIA) benefits and over $100,000 in COVID Emergency Rental Assistance payments from the Michigan State Housing Development Authority (MSHDA). The case was referred to the Department of Attorney General by UIA and MSHDA. In 2024, these agencies established an agreement to jointly investigate large-scale fraud cases.
Attorney General Nessel stated: “Assistance programs are intended to help people during difficult times, and not only did this individual allegedly siphon off hundreds of thousands from struggling Michiganders but did so by committing identity theft that harmed innocent victims. I would like to thank UIA and MSHDA for referring this matter to my office. We remain committed to pursuing those who commit fraud and abuse taxpayer funds.”
Jason Palmer, Director of UIA, said: “UIA is committed to administering the state’s unemployment insurance program with integrity while providing fast, fair, and fraud-free service. We work closely with our state partners and law enforcement to aggressively investigate any threat to the Unemployment Insurance Trust Fund so Michigan’s residents can be confident the benefits they are entitled to receive will be there when they need help after losing a job.”
Amy Hovey, CEO and Executive Director of MSHDA added: “Identity theft and fraud undermine the integrity of critical support systems that families rely on in times of need. MSHDA administered the COVID Emergency Rental Assistance program during the pandemic to help keep Michiganders safely housed, and we appreciate Attorney General Nessel’s continued work to hold accountable anyone who attempted to exploit those resources for personal gain.”
Butts received a bond set at $200,000/10% and is scheduled for a probable cause conference on February 12, 2026. A preliminary examination is set for February 19, 2026.
The Michigan Department of Attorney General serves as the chief legal office in Michigan with statewide authority aimed at protecting residents through public service initiatives such as combating human trafficking and supporting vulnerable populations (official website). Dana Nessel has served as Michigan’s attorney general since becoming its 54th officeholder (official website).
Officials remind that criminal charges are allegations; defendants are presumed innocent unless proven guilty.
