NY Lottery Responds to Welfare Fraud Questions | News
BUFFALO, N.Y. -- The New York Lottery is responding to questions about oversight after a prize winner was accused of welfare fraud for not reporting his winnings as income.
Anthony Palermo, who lives in Orleans County, won the "Win for Life" scratch off game more than a decade ago, guaranteeing him one thousand dollars a week, for life.
Prosecutors say Palermo applied for Medicaid and HEAP last fall, and broke the law when he never disclosed his lottery winnings and got more than four-thousand dollars in benefits.
We emailed the lottery to find out if they have a system in place to prevent fraud like the kind Palermo is accused of. Their response is below.
"The Lottery has no special program for reporting on prize winners who may be subject to income limits to qualify for government benefits. Like other forms of income, lottery prizes must be reported to the IRS and the New York State Department of Taxation and Finance."